**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C.  20549**

----

**FORM      10-Q**

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

**For      the Quarterly Period Ended September 30, 2007**

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

**Commission      file number 0-12992**

**SYNTHETECH,      INC.**

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

**                                                           **

**1290      Industrial Way**

**PO      Box 646**

**Albany,      Oregon  97321**

**(541)      967-6575**

**Yes   X               No      ___**

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

**Yes                            No   X  **

**  **

**Class:      Common Stock, $0.001 par value**

**Shares      outstanding as of November 9, 2007:  14,566,614**

----

**SYNTHETECH,      INC**

**INDEX**

|                                                                                           | **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                                   | 27 |
|                                                                                           |                                                                                                                              |   |
| Item                    4.                                                 | Controls                    and Procedures                                                                                        | 27 |
|                                                                                           |                                                                                                                              |
| **Part                    II.    Other                    Information**    |                                                                                                                              |
|                                                                                           |                                                                                                                              |
| Item                    4.                                                      | Submission                  of Matters to a Vote of Security                  Holders                                   | 29 |
|                                                                                           |                                                                                                                              |   |
| Item                    5.                                                 | Other                  Information                                                                                                | 30 |
|                                                                                           |                                                                                                                              |   |
| Item                    6.                                                 | Exhibits                                                                                                                          | 32 |
|                                                                                           |                                                                                                                              |
|                      Signatures                                                 | 33                                                                                                                                |

**2**

----

| **PART                I. FINANCIAL INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| **Item                1. Financial Statements**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| **SYNTHETECH,                INC.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| **Condensed                Balance Sheets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | **September                30,** |   |   | March                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | **2007** |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| **Assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| Current                Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
|      Cash                and cash                equivalents                                                                                                             |   | **$** | **744,000** |   |   | $ | 259,000 |   |
|      Accounts                receivable, less allowance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|        for                doubtful accounts of $15,000 for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|        both                periods                                                                                                                             |   | ** ** | **1,221,000** |   |   |   | 2,195,000 |   |
|      Inventories                                                                                                                                                         |   | ** ** | **4,151,000** |   |   |   | 4,778,000 |   |
|      Prepaid                expenses                                                                                                                                     |   | ** ** | **101,000** |   |   |   | 354,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|           Total                Current                Assets                                                                                    |   | ** ** | **6,217,000** |   |   |   | 7,586,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Property,                Plant and Equipment,                net                                                                                                                                  |   | ** ** | **4,037,000** |   |   |   | 3,746,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|           Total                Assets                                                                                                           |   | **$** | **10,254,000** |   |   | $ | 11,332,000 |   |

*The            accompanying notes are an integral part of these condensed financial            statements.*

**3**

----

| **SYNTHETECH,                INC.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| **Condensed                Balance Sheets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **September                30,** |   |   | March                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **2007** |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| Current                Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
|      Line                of                credit                                                                                                                           |   | **$** | **21,000** |   |   | $ | 644,000 |   |
|      Note                Payable                                                                                                                                            |   | ** ** | **-** |   |   |   | 132,000 |   |
|      Accounts                payable                                                                                                                                        |   | ** ** | **1,160,000** |   |   |   | 782,000 |   |
|      Accrued                compensation                                                                                                                                    |   | ** ** | **318,000** |   |   |   | 273,000 |   |
|      Accrued                termination                benefits                                                                                                             |   | ** ** | **17,000** |   |   |   | 124,000 |   |
|      Deferred                revenue                                                                                                                                        |   | ** ** | **-** |   |   |   | 43,000 |   |
|      Other                accrued                liabilities                                                                                                                |   | ** ** | **16,000** |   |   |   | 3,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|           Total                Current                Liabilities                                                                                  |   | ** ** | **1,532,000** |   |   |   | 2,001,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Shareholders'                Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|      Common                stock, $.001 par value; authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|        100,000,000                shares; issued and outstanding,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|        14,566,000                and 14,547,000                shares                                                                                             |   | ** ** | **15,000** |   |   |   | 15,000 |   |
|      Paid-in                capital                                                                                                                                         |   | ** ** | **9,309,000** |   |   |   | 9,176,000 |   |
|      Retained                earnings                (deficit)                                                                                                              |   | ** ** | **(602,000** | **)** |   |   | 140,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|           Total                Shareholders'                Equity                                                                                 |   | ** ** | **8,722,000** |   |   |   | 9,331,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Total                Liabilities and Shareholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **$** | **10,254,000** |   |   | $ | 11,332,000 |   |

*The            accompanying notes are an integral part of these condensed financial            statements.*

**4**

----

| **SYNTHETECH,                INC.**                      |   |
|----------------------------------------------------------|--------|
|                                                     |   |
| **Condensed                Statements of Operations**    |   |
| (unaudited)                                              |   |
|                                                     |   |
|                                                     |   | For                the Three Months Ended |   |   | For                the Six Months Ended |   |
|                                                     |   | September                30, |   |   | September                30, |   |
|                                                     |   | **2007** |   |   | 2006 |   |   | **2007** |   |   | 2006 |   |
|                                                     |   |
| Revenue                                                  |   | **$** | **2,981,000** |   |   | $ | 3,187,000 |   |   | **$** | **7,153,000** |   |   | $ | 4,930,000 |   |
| Cost                of revenue                           |   | ** ** | **2,838,000** |   |   |   | 2,110,000 |   |   | ** ** | **5,821,000** |   |   |   | 3,808,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                income                              |   | ** ** | **143,000** |   |   |   | 1,077,000 |   |   | ** ** | **1,332,000** |   |   |   | 1,122,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research                and development                  |   | ** ** | **346,000** |   |   |   | 277,000 |   |   | ** ** | **674,000** |   |   |   | 607,000 |   |
| Selling,                general and administrative       |   | ** ** | **638,000** |   |   |   | 597,000 |   |   | ** ** | **1,363,000** |   |   |   | 1,107,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                operating expenses                  |   | ** ** | **984,000** |   |   |   | 874,000 |   |   | ** ** | **2,037,000** |   |   |   | 1,714,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income (loss)                   |   | ** ** | **(841,000** | **)** |   |   | 203,000 |   |   | ** ** | **(705,000** | **)** |   |   | (592,000 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                           |   | ** ** | **3,000** |   |   |   | 10,000 |   |   | ** ** | **12,000** |   |   |   | 22,000 |   |
| Interest                expense                          |   | ** ** | **(23,000** | **)** |   |   | (16,000 | ) |   | ** ** | **(49,000** | **)** |   |   | (18,000 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) before income taxes         |   | ** ** | **(861,000** | **)** |   |   | 197,000 |   |   | ** ** | **(742,000** | **)** |   |   | (588,000 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax benefit                        |   | ** ** | **-** |   |   |   | (1,000 | ) |   | ** ** | **-** |   |   |   | (1,000 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                         |   | **$** | **(861,000** | **)** |   | $ | 198,000 |   |   | **$** | **(742,000** | **)** |   | $ | (587,000 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss) per common share:       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted income (loss) per share |   | **$** | **(0.06** | **)** |   | $ | 0.01 |   |   | **$** | **(0.05** | **)** |   | $ | (0.04 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding:      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                    |   | ** ** | **14,561,339** |   |   |   | 14,521,614 |   |   | ** ** | **14,553,936** |   |   |   | 14,521,614 |   |
| Diluted                                                  |   | ** ** | **14,561,339** |   |   |   | 14,561,138 |   |   | ** ** | **14,553,936** |   |   |   | 14,521,614 |   |

*The            accompanying notes are an integral part of these condensed financial            statements.*

**5**

----

| **SYNTHETECH,                INC.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| **Condensed                Statements of Cash Flows**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| For                The Six Months Ended September 30,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **2007** |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| Net                loss                                                                                                                                                             |   | **$** | **(742,000** | **)** |   | $ | (587,000 | ) |
| Adjustments                to reconcile net income (loss) to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|   net                cash provided by (used in) operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|     Depreciation                expense                                                                                                                         |   | ** ** | **236,000** |   |   |   | 269,000 |   |
|     Loss                on retirement of                equipment                                                                                               |   | ** ** | **16,000** |   |   |   | - |   |
|     Stock-based                compensation                expense                                                                                              |   | ** ** | **126,000** |   |   |   | 24,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|     (Increase)                decrease in assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|       Accounts                receivable,                net                                                                                          |   | ** ** | **974,000** |   |   |   | (785,000 | ) |
|       Inventories                                                                                                                                     |   | ** ** | **627,000** |   |   |   | (597,000 | ) |
|       Prepaid                expenses                                                                                                                 |   | ** ** | **253,000** |   |   |   | 112,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|     Increase                (decrease) in liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|       Accounts                payable                                                                                                                 |   | ** ** | **378,000** |   |   |   | (11,000 | ) |
|       Accrued                compensation                                                                                                             |   | ** ** | **45,000** |   |   |   | 13,000 |   |
|       Accrued                termination                benefits                                                                                      |   | ** ** | **(107,000** | **)** |   |   | - |   |
|       Deferred                revenue                                                                                                                 |   | ** ** | **(43,000** | **)** |   |   | 272,000 |   |
|       Other                accrued                liabilities                                                                                         |   | ** ** | **13,000** |   |   |   | - |   |
|         Cash                Provided By (Used In) Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | ** ** | **1,776,000** |   |   |   | (1,290,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    Property,                plant and equipment                purchases                                                                                             |   | ** ** | **(543,000** | **)** |   |   | (58,000 | ) |
|    Sale                of marketable securities, available for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | ** ** | **-** |   |   |   | 800,000 |   |
|         Cash                Provided by (Used In)  Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | ** ** | **(543,000** | **)** |   |   | 742,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    Proceeds                from (repayments of) line of credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | ** ** | **(623,000** | **)** |   |   | 443,000 |   |
|    Principal                payments under long-term debt obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | ** ** | **-** |   |   |   | (14,000 | ) |
|    Repayment                of note                payable                                                                                                           |   | ** ** | **(132,000** | **)** |   |   | (91,000 | ) |
|    Proceeds                from exercise of stock options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | ** ** | **7,000** |   |   |   | - |   |
|         Cash                Provided By (Used In) Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | ** ** | **(748,000** | **)** |   |   | 338,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|         Increase                (Decrease) in Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | ** ** | **485,000** |   |   |   | (210,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Cash                and Cash Equivalents at Beginning of Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | ** ** | **259,000** |   |   |   | 1,233,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Cash                and Cash Equivalents at End of                Period                                                                                                            |   | **$** | **744,000** |   |   | $ | 1,023,000 |   |

*The            accompanying notes are an integral part of these condensed financial            statements.*

**6**

----

**SYNTHETECH,      INC.**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

| **NOTE                A.** | **GENERAL                AND BUSINESS** |
|----------------------------|-----------------------------------------|

| **NOTE                B.** | **SUMMARY                OF SIGNIFICANT ACCOUNTING                POLICIES** |
|----------------------------|------------------------------------------------------------------------------|

**Use      of Estimates:  **

**7**

----

**Cash      and Cash Equivalents:**

|                                                                                                                                                                                                                                                                                                                                                    |   | **September                30,** |        |   | March                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                    |   | **2007**                         |        |   | 2007                     |   |
|                                                                                                                                                                                                                                                                                                                                                    |   |                             |        |   |                     |   |
| Cash                                                                                |   | **$**                            | **275,000** |   |                     | $      | 209,000 |   |
| Cash                equivalents                                                     |   | ** **                       | **469,000** |   |                     |   | 50,000 |   |
|                                                                                                                                                                                                                                                                                                                                                    |   | **$**                            | **744,000** |   |                     | $      | 259,000 |   |

**Accounts      Receivable: **

**Concentrations      of Credit Risk:**

**Inventories:**

**Property,      Plant and Equipment:**

**8**

----

**Income      Taxes:  **

**Revenue      Recognition:**

**Research      and Development Costs:**

**Comprehensive      Income or Loss:  **

**Stock-Based      Compensation:  **

**9**

----

**Recent      Accounting Pronouncements:  **

| **NOTE                C.** | **NET                INCOME (LOSS) PER SHARE** |
|----------------------------|------------------------------------------------|

|                                                                               |   | For                the Three Months |          |   | For                the Six Months  |   |
|------------------------------------------------------------------------------------|--------|-------------------------------------|---------------|--------|------------------------------------|--------|
|                                                                               |   | Ended                September 30,  |          |   | Ended                September 30, |   |
|                                                                               |   | **2007**                            |          |   | 2006                               |   |   | **2007** |   |   | 2006 |   |
|                                                                               |   |                                |          |   |                               |   |
| Common                stock options outstanding                                    |   | ** **                          | **2,299,100** |   |                               |   | 1,855,800 |   |   | ** ** | **2,299,100** |   |   |   | 1,855,800 |   |
| Less                common stock options used in                                   |   |                                |          |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|     calculating                diluted income (loss) per share |   | ** **                          | **-**         |   |                               |   | 39,524 |   |   | ** ** | **-** |   |   |   | - |   |
| Common                stock options not used in                                    |   |                                |          |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|     calculating                diluted income (loss) per share |   | ** **                          | **2,299,100** |   |                               |   | 1,816,276 |   |   | ** ** | **2,299,100** |   |   |   | 1,855,800 |   |

| **NOTE                D.** | **STATEMENTS                OF CASH FLOWS** |
|----------------------------|---------------------------------------------|

| Cash                Paid                                                                                                                                                                                                                           |   | Three                Months Ended September 30, |       |   | Six                Months Ended September 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                                               |   | **2007**                                        |       |   | 2006                                          |   |   | **2007** |   |   | 2006 |   |
|                                                                                                                                                                                                                                               |   |                                            |       |
| Interest                                        |   | **$**                                           | **23,000** |   |                                          | $      | 16,000 |   |   | **$** | **49,000** |   |   | $ | 18,000 |   |

**10**

----

| **NOTE                E.** | **INVENTORIES** |
|----------------------------|-----------------|

|                                                                                                                                                                                                                                                                                                                                                                  |   | **September                30,** |          |   | March                31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                  |   | **2007**                         |          |   | 2007                     |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                             |          |   |                     |   |
| Finished                products                                                                  |   | **$**                            | **1,895,000** |   |                     | $      | 2,051,000 |   |
| Work                in                process                                                     |   | ** **                       | **897,000**   |   |                     |   | 1,106,000 |   |
| Raw                materials                                                                      |   | ** **                       | **1,359,000** |   |                     |   | 1,621,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   | **$**                            | **4,151,000** |   |                     | $      | 4,778,000 |   |

| **NOTE                F.** | **PROPERTY,                PLANT AND EQUIPMENT** |
|----------------------------|--------------------------------------------------|

|                                    |   | Depreciable                Life    |   |   | **September                30,** |           |   | March                31, |   |
|-----------------------------------------|--------|------------------------------------|--------|--------|----------------------------------|----------------|--------|--------------------------|--------|
|                                    |   | In                Years            |   |   | **2007**                         |           |   | 2007                     |   |
| Land                                    |   |                               |   |   | **$**                            | **241,000**    |   |                     | $      | 241,000 |   |
| Buildings                               |   |  15                – 40 |   |   | ** **                       | **1,617,000**  |   |                     |   | 1,616,000 |   |
| Machinery                and equipment  |   |  5–                17   |   |   | ** **                       | **2,608,000**  |   |                     |   | 2,382,000 |   |
| Laboratory                equipment     |   |  5–                17   |   |   | ** **                       | **1,260,000**  |   |                     |   | 1,058,000 |   |
| Furniture                and fixtures   |   |  3–                5    |   |   | ** **                       | **90,000**     |   |                     |   | 82,000 |   |
| Construction                in process  |   |                          |   |   | ** **                       | **86,000**     |   |                     |   | 7,000 |   |
|                                    |   |                          |   |   | ** **                       | **5,902,000**  |   |                     |   | 5,386,000 |   |
|                                    |   |                          |   |   |                             |           |   |                     |   |   |   |
| Less:                                   |   |                          |   |   |                             |           |   |                     |   |   |   |
| Accumulated                depreciation |   |                          |   |   | ** **                       | **(1,865,000** | **)**  |                     |   | (1,640,000 | ) |
|                                    |   |                          |   |   |                             |           |   |                     |   |   |   |
|                                    |   |                          |   |   | **$**                            | **4,037,000**  |   |                     | $      | 3,746,000 |   |

**11**

----

| **NOTE                G.** | **LINE                OF CREDIT** |
|----------------------------|-----------------------------------|

| **NOTE                H.** | **ACCRUED                TERMINATION BENEFITS** |
|----------------------------|-------------------------------------------------|

| **NOTE                I.** | **EMPLOYEE                STOCK BENEFITS** |
|----------------------------|--------------------------------------------|

**Description      of the Stock Plans**

*Stock      Plan*

*2005 Plan*

*Stock      Option Agreements – *

*Restricted      stock awards (RSAs) – *

**12**

----

*Other      Stock Grant*

**Stock      Option Activity**

|                                                   |   | Number  |      |   | Weighted                Average |   |   | Weighted                Average         |   |      | Aggregate |   |
|--------------------------------------------------------|--------|---------|-----------|--------|---------------------------------|--------|--------|-----------------------------------------|--------|-----------|-----------|--------|
|                                                   |   | Of      |      |   | Exercise                        |   |   | Remaining                               |   |      | Intrinsic |   |
|                                                   |   | Options |      |   | Price                           |   |   | Contractual                Term (years) |   |      | Value     |   |
| Options                outstanding, March 31, 2007     |   |    | 1,793,800 |   |                            | $      | 1.13   |                                    |   |      |      |   |   |   |
| Granted                                                |   |    | 540,000   |   |                            | $      | 0.88   |                                    |   |      |      |   |   |   |
| Exercised                                              |   |    | (20,000   | )      |                            | $      | 0.33   |                                    |   |      |      |   |   |   |
| Canceled                                               |   |    | (14,700   | )      |                            | $      | 1.56   |                                    |   |      |      |   |   |   |
| Options                outstanding, September 30, 2007 |   |    | 2,299,100 |   |                            | $      | 1.07   |                                    |   |  7.2 |      |   | $ | 313,000 |   |
| Options                exercisable, September 30, 2007 |   |    | 1,785,111 |   |                            | $      | 1.18   |                                    |   |  6.6 |      |   | $ | 246,000 |   |
|                                                   |   |    |      |   |                            |   |   |                                    |   |      |      |   |   |   |   |   |

|                           |   |   | **Options                Outstanding** |      |      | **Options                Exercisable** |   |
|--------------------------------|--------|--------|----------------------------------------|-----------|-----------|----------------------------------------|--------|
|                           |   |   |                                   |      |      | **Weighted**                           |   |   | **Weighted** |   |   |   |   |   | **Weighted** |   |
|                           |   |   |                                   |      |      | **Average**                            |   |   | **Average** |   |   |   |   |   | **Average** |   |
| **Exercise**                   |   |   |                                   |      |      | **Exercise**                           |   |   | **Remaining** |   |   |   |   |   | **Exercise** |   |
| **Price                Range** |   |   | **Shares**                             |      |      | **Price**                              |   |   | **Life** |   |   | **Shares** |   |   | **Price** |   |
| $0.16                - $0.92   |   |   |                                   | 1,336,000 |      |                                   | $      | 0.58 |   |   |   | 8.8 |   |   |   | 837,011 |   |   | $ | 0.50 |   |
| $1.08                - $1.82   |   |   |                                   | 722,200   |      |                                   | $      | 1.53 |   |   |   | 5.2 |   |   |   | 707,200 |   |   | $ | 1.54 |   |
| $2.07                - $2.50   |   |   |                                   | 179,100   |      |                                   | $      | 2.09 |   |   |   | 4.5 |   |   |   | 179,100 |   |   | $ | 2.09 |   |
| $3.13                - $4.56   |   |   |                                   | 61,800    |      |                                   | $      | 3.63 |   |   |   | 2.6 |   |   |   | 61,800 |   |   | $ | 3.63 |   |
|                           |   |   |                                   |      |      |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |   |                                   |      | 2,299,100 |                                   |   | $ | 1.07 |   |   |   | 7.2 |   |   |   | 1,785,111 |   |   | $ | 1.18 |   |

**13**

----

*Recognition      of Compensation Expense and Forfeitures*

|                                                  |   | For                the Three Months |      |   | For                the Six Months  |   |
|-------------------------------------------------------|--------|-------------------------------------|-----------|--------|------------------------------------|--------|
|                                                  |   | Ended                September 30,  |      |   | Ended                September 30, |   |
|                                                  |   | **2007**                            |      |   | 2006                               |   |   | **2007** |   |   | 2006 |   |
|                                                  |   |                                |      |   |                               |   |
| Expected                price volatility              |   | ** **                          | **55%**   |   |                               |   | 72% |   |   | ** ** | **50%** |   |   |   | 72% |   |
| Risk-free                interest rate                |   | ** **                          | **4.96%** |   |                               |   | 4.74% |   |   | ** ** | **4.96%** |   |   |   | 4.74% |   |
| Expected                term in years                 |   | ** **                          | **10**    |   |                               |   | 5.6 |   |   | ** ** | **6.1** |   |   |   | 5.6 |   |
| Dividend                yield                         |   | ** **                          | **-**     |   |                               |   | - |   |   | ** ** | **-** |   |   |   | - |   |
| Weighted                average grant date fair value |   | **$**                               | **0.75**  |   |                               | $      | 0.21 |   |   | **$** | **0.48** |   |   | $ | 0.21 |   |

*Expense      Information under SFAS No. 123(R)*

|                                                                    |   | For                the Three Months |       |   | For                the Six Months  |       |
|-------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|------------------------------------|------------|
|                                                                    |   | Ended                September 30,  |       |   | Ended                September 30, |       |
|                                                                    |   | **2007**                            |       |   | 2006                               |       |   | **2007** |   |   | 2006 |   |
|                                                                    |   |                                |       |   |                               |       |
| Stock-based                compensation expense:                        |   |                                |       |   |                               |       |   |   |   |   |   |   |
| Cost                of revenue                                          |   | **$**                               | **4,000**  |   |                               | $          | - |   |   | **$** | **28,000** |   |   | $ | - |   |
| Operating                expenses                                       |   |                                | **20,000** |   |                               |       | 24,000 |   |   |   | **98,000** |   |   |   | 24,000 |   |
|   Stock-based                compensation expense             |   |                                |       |   |                               |       |   |   |   |   |   |   |   |   |   |   |
|      before                income taxes        |   |                                | **24,000** |   |                               |       | 24,000 |   |   |   | **126,000** |   |   |   | 24,000 |   |
| Income                tax benefit                                       |   | ** **                          | **-**      |   |                               | ** ** | **-** |   |   | ** ** | **-** |   |   | ** ** | **-** |   |
| Total                stock-based compensation                           |   |                                |       |   |                               |       |   |   |   |   |   |   |   |   |   |   |
|      expense                after income taxes |   | **$**                               | **24,000** |   |                               | $          | 24,000 |   |   | **$** | **126,000** |   |   | $ | 24,000 |   |
|                                                                    |   |                                |       |   |                               |       |   |   |   |   |   |   |   |   |   |   |

**14**

----

| **NOTE                J.** | **SYNTHETECH                COMMON STOCK** |
|----------------------------|--------------------------------------------|

| **NOTE                K.** | **RELATED                PERSON TRANSACTIONS** |
|----------------------------|------------------------------------------------|

| **NOTE                L.** | **LIQUIDITY** |
|----------------------------|---------------|

*i.e. cash and cash equivalents and accounts receivable) *

**15**

----

| **Item                2.** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

**FORWARD      LOOKING STATEMENTS**

*This      Quarterly Report on Form 10-Q contains forward-looking statements within the      meaning of the Private Securities Litigation Reform Act of 1995.  All      statements, other than statements of historical fact, including statements      regarding industry prospects and future results of operations or financial      position, made in this Quarterly Report are forward looking. Words such as      “anticipates,” “believes,” “expects,” “future” and “intends” and similar      expressions may identify forward-looking statements. In particular,      forward-looking statements in this report include statements      regarding:  our future performance and operating results; shipping      dates for customer orders; recurrence of large-scale projects; resolution of      manufacturing process difficulties; continued Section 404 expenses for the      remainder of fiscal 2008; our ability to finance our growth strategy; the      conditions of the fine chemicals industry; the revenue-generating potential      of      our current projects; obtaining regulatory approval for new drugs and other      matters relating to drug development progress; financing our current and future      capital expenditures and the amount of such expenditures; the effect any change      in foreign currency exchange rates would have on our operating results; whether      our cash and cash equivalents, borrowing capacity and internally-generated      funds      will be adequate to operate our business; and our inability to recognize      deferred tax assets. Forward-looking statements reflect management’s current      expectations, plans or projections and are inherently      uncertain.  Actual results could differ materially from management's*
*expectations, plans or projections.  Readers are cautioned      not to place undue reliance on these forward-looking statements, which speak      only as of the date of this report. The risks and uncertainties that may cause      actual results to vary materially from any forward-looking statements include,      but are not limited to, the following: the uncertain market for our products;      potential loss of a significant customer; customer concentration; potential      termination or suspension by customers of significant projects or orders;      potential production or shipping delays; our limited experience in entering      new      markets and market segments; potential period-to-period revenue or expense      fluctuations; our limited financial and other resources; higher than expected      cash use, or inability to borrow funds under our line of credit or to raise      other debt or equity capital required to continue operations or to implement      our      growth strategy; production factors and timely access to raw materials; industry      cost factors; competition; government regulation; labor disputes; technological      change; future incentive stock awards; and international business      risks.  Investors are urged to read our filings with the Securities      and Exchange Commission, including our Annual Report on Form 10-K for the fiscal      year ended March 31, 2007, for a further description of risks and uncertainties      related to forward-looking statements made by us as well as to other aspects      of      our business. Synthetech does not intend to release any revisions to these      forward-looking statements that may be made to reflect events or circumstances      after the date hereof or to reflect the occurrence of unanticipated      events.*

**16**

----

**OVERVIEW**

*cGMP*
*FDA)*

*Financial      Results*

*Market      Overview*

**17**

----

*Business      Conditions*

*Customer      Project Pipeline*

| Significant                                                                                |   | Number    |   |   |                                |   |   |     |   |   |        |   |   |   |   |   | Total                   |
|--------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-------------------------------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|--------|-----------------------------------|
| Customer                                                                                   |   | Of        |   |   | Clinical                Trial Phase |   |   | Marketed |   |   | Significant |
| Projects                                                                                   |   | Companies |   |   | I                                   |   |   | II       |   |   | III         |   |   | Drug   |   |   | Projects                          |
|                                                                                       |   |      |   |   |                                |   |   |     |   |   |        |   |   |   |   |   |                              |
| Major                pharmaceutical                                                        |   |      | 8      |   |                                |   | 4      |     |   |   | 7           |   |   |   | -      |   |                              |   | 7 |   |   |   | 18 |   |
| Active                pharmaceutical   ingredient                contractor |   |      | 3      |   |                                |   | 1      |     |   |   | 1           |   |   |   | 2      |   |                              |   | 2 |   |   |   | 6 |   |
| Emerging   Pharmaceutical                                                   |   |      | 9      |   |                                |   | 7      |     |   |   | 2           |   |   |   | 2      |   |                              |   | - |   |   |   | 11 |   |
|                                                                                       |   |      | 20     |   |                                |   | 12     |     |   |   | 10          |   |   |   | 4      |   |                              |   | 9 |   |   |   | 35 |   |

**18**

----

**RESULTS      OF OPERATIONS**

| **Percentage                of Revenue**                                                                                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                               |   | For                the Three Months Ended |   | For                the Six Months Ended |
|                                                                                                                                                                                                                                                                                                               |   | September                30, |   | September                30, |
|                                                                                                                                                                                                                                                                                                               |   | **2007** |   | 2006 |   | **2007** |   | 2006 |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Revenue                                                                                     |   | **100.0%** |   | 100.0% |   | **100.0%** |   | 100.0% |
| Cost                of                revenue                                               |   | **95.2** |   | 66.2 |   | **81.4** |   | 77.2 |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Gross                income                                                                 |   | **4.8** |   | 33.8 |   | **18.6** |   | 22.8 |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Research                and development                                                                                                                                                                                                                                                                            |   | **11.6** |   | 8.7 |   | **9.4** |   | 12.3 |
| Selling,                general and administrative                                                                                                                                                                                                                                                                 |   | **21.4** |   | 18.7 |   | **19.1** |   | 22.5 |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Total                operating expenses                                                                                                                                                                                                                                                                            |   | **33.0** |   | 27.4 |   | **28.5** |   | 34.8 |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Operating  income                (loss)                                                                                                                                                                                                                                                                  |   | **(28.2)** |   | 6.4 |   | **(9.9)** |   | (12.0) |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Interest                income                                                              |   | **0.1** |   | 0.3 |   | **0.2** |   | 0.4 |
| Interest                expense                                                             |   | **(0.8)** |   | (0.5) |   | **(0.7)** |   | (0.3) |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                                                                                                                                                                                                   |   | **(28.9)** |   | 6.2 |   | **(10.4)** |   | (11.9) |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Income                tax                expense                                            |   | **-** |   | - |   | **-** |   | - |
|                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Net                income                (loss)                                             |   | **(28.9)%** |   | 6.2% |   | **(10.4)%** |   | (11.9)% |

**Revenue**

**19**

----

**Gross      income**

**20**

----

**Operating      Expenses**

***R&D      Expense.***

-  an          aggregate increase during the second quarter of fiscal 2008 in compensation          expense of $76,000, composed of an increase from additional chemists employed          by Synthetech in response to improving business conditions, the termination          of          our contract research services agreement with a facility in India in          August 2006 (as described below), and general increases in salaries and          benefits; and 

-  an          increase during the second quarter of fiscal 2008 in laboratory supplies          and          travel expense of $30,000. 

-  decreased          costs during the second quarter of fiscal 2008 of $34,000 in fees for contract          research services provided by the facility in India; and 

-  a          decrease during the second quarter of fiscal 2008 of $6,000 arising from          an          increase in the amount of R&D department costs allocated to inventory for          the manufacture of small-scale products, as described          below. 

-  an          increase during the first six months of fiscal 2008 of $173,000 in          compensation and related costs relating to an increase in the number of          chemists employed by Synthetech in response to improving business conditions          and the termination of a contract research services agreement with an Indian          pharmaceutical company in August 2006, and general increases in salaries          and benefits; and 

-  an          increase during the first six months of fiscal 2008 in travel expense and          professional fees of $23,000. 

-  decreased          costs during the first six months of fiscal 2008 of $104,000 in fees primarily          for contract research services provided by a facility in India,          and 

**21**

----

-  a          decrease during the first six months of fiscal 2008 of $25,000 arising          from an          increase in the amount of R&D department costs allocated to inventory for          the manufacture of small-scale products. 

***SG&A      Expense.***

-  an          aggregate $191,000 increase in compensation expense, comprised of $60,000          of          stock-based compensation expense, approximately $52,000 attributable to          a new          senior sales position created in April 2007, and $19,000 of general increases          in salaries and benefits and sales, signing and performance bonuses;          and 

-  during          the first quarter of fiscal 2008, Synthetech incurred $40,000 in consulting          fees related to the implementation of Section 404 of the Sarbanes-Oxley          Act;          and 

-  a          $24,000 increase in consulting services provided by M. Sreenivasan,          Synthetech’s former Chief Executive Officer, since his retirement on October          31, 2006. 

**22**

----

**Interest      Income**

**Interest      Expense**

**Income      Taxes**

**Net      Income (Loss)**

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES**

**Allowance      for Doubtful Accounts**

**23**

----

**Inventories**

**Long-Lived      Asset Impairment**

-  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. 

**Revenue      Recognition**

-  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. 

**24**

----

**INDUSTRY      FACTORS**

**Market      Factors**

**Production      Factors**

**25**

----

**LIQUIDITY      AND CAPITAL RESOURCES**

**26**

----

| **Item                3.** | **Quantitative                and Qualitative Disclosures about Market                Risk** |
|----------------------------|----------------------------------------------------------------------------------------------|

| **Item                4.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

**27**

----

**28**

----

| **PART                II.** | **OTHER                INFORMATION** |
|-----------------------------|--------------------------------------|

| **Item                4.** | **Submission                of Matters to a Vote of Security                Holders** |
|----------------------------|---------------------------------------------------------------------------------------|

| *1)* | *Election                of Directors* |
|------|----------------------------------------|

| Name                  of Director       |   | For        |   | Withheld           |
|-----------------------------------------|--------|------------|--------|--------------------|
|                                    |   |       |   |               |
| Paul                  C. Ahrens         |   | 12,948,675 |   | 286,331            |
| Daniel                  T. Fagan, Ph.D. |   | 13,181,250 |   |   53,756 |
| Howard                  L. Farkas       |   | 12,938,925 |   | 296,081            |
| Donald                  E. Kuhla, Ph.D. |   | 13,120,800 |   | 114,206            |
| Hans                  C. Noetzli        |   | 13,182,050 |   |   52,956 |
| Charles                  B. Williams    |   | 12,941,325 |   | 293,681            |

| *2)* | *Ratification                of Independent Auditors* |
|------|-------------------------------------------------------|

|                                                      | For        | Against            | Abstain                  |
|--------------------------------------------------------------------------|------------|--------------------|--------------------------|
| Appointment                  of Peterson Sullivan PLLC    |       |               |                     |
|   as                  independent auditor       | 13,179,295 |   36,003 |    19,708 |

**29**

----

| **Item                5.** | **Other                Information** |
|----------------------------|--------------------------------------|

*Executive      Compensation*

|                                                                                                                               |   |                         |    |                                                                                              |                    | **Fiscal                2008 Target Bonus Allocation**          |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|---------------------------------------------------------------------------------------------------|-------------------------|-----------------------------------------------------------------|--------|
| **Name                and Title**                                                                                                  |   | **Fiscal****2008****Salary** |    | **Fiscal                2008 Range of****Cash****Incentive                as a % of Base Salary** |                    | **Health,                Safety and Environ-mental Objectives** |   |   | **Business                Strategy Objectives** |   |   | **Business                Performance Objectives** |   |
| Dr.                Daniel T. FaganChief                Executive Officer                                                           |   | $                            | 150,000 |                                                                                              | 0                to 77% |                                                            |   | 10 | % |   |   | 30 | % |   |   | 60 | % |
| Dr.                Gregory R. HahnPresident                and Chief Operating Officer                                             |   | $                            | 200,000 |                                                                                              | 0                to 81% |                                                            |   | 10 | % |   |   | 10 | % |   |   | 80 | % |
| Gary                A. WeberVice                President of Finance and Administration and Chief Financial                Officer |   | $                            | 145,000 |                                                                                              | 0                to 57% |                                                            |   | 10 | % |   |   | 25 | % |   |   | 65 | % |
| Joel                D. Melka1Vice                President of Operations                                                           |   | $                            | 140,000 |                                                                                              | 0                to 45% |                                                            |   | 15 | % |   |   | 35 | % |   |   | 50 | % |

----

**30**

----

| **Health,                Safety and Environmental Objectives:** |                                                                      | **10-15%**                                                                                               |
|-----------------------------------------------------------------|---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|                                                            |                                                                      |                                                                                                     |   |
|                                                            | *Recordable                Injuries*                                      | *4-5%                *   |   |
|                                                            | *Lost-Time                Accidents*                                      | *4-5%                *   |   |
|                                                            | *Process                Safety and Reportable Environmental Incident*     | *2-5%                *   |   |
|                                                            |                                                                      |                                                                                                     |   |
| **Business                Strategy Objectives:**                |                                   | **10-35%**                                                                                               |
|                                                            | *New                Technology*                                           | *10%                *    |   |
|                                                            | *New                Business Areas*                                       | *5%                *     |   |
|                                                            | *Cost                Controls and Improvements*                           | *10-20%                * |   |
|                                                            | *Process                Development*                                      | *5%                *     |   |
|                                                            | *Sarbanes-Oxley 404                Analysis*                         | *5-10%                *  |   |
|                                                            | *Investor                Relations*                                       | *5%                *     |   |
|                                                            | *ISO                14001 Certification*                                  | *5%                *     |   |
|                                                            |                                                                      |                                                                                                     |   |
| **Business                Performance Objectives:**             |                                                                      | **50-80%**                                                                                               |
|                                                            |                                                                      |                                                                                                     |   |
|                                                            | *Achieve                Sales Target*                                     | *10-20%                * |   |
|                                                            | *Achieve                EBIT (earnings before interest and taxes) Target* | *40-60%                * |   |

**31**

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| **Item                  6.** | **Exhibits** |
|------------------------------|--------------|

|  | (a) | 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                10.1 | Fiscal                2008 Executive Bonus                Objectives |
|--------|-----------------------------|----------------------------------------------------------------------|

|  | 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 |
|--|-----------------------------|-------------------------------------------------------------------------------------|

**32**

----

**SIGNATURES**

|                                                       | SYNTHETECH,                INC.(Registrant) |                                                                               |
|------------------------------------------------------------|---------------------------------------------|------------------------------------------------------------------------------------|
|                                                       |                                        |                                                                               |   |
| Date: November                13,                2007 | By:                                         | /s/ Daniel              T. Fagan                                              |   |
|                                                       |                                        | Daniel              T. Fagan                                                       |   |
|                                                       |                                        | Chairman&Chief              Executive              Officer                     |   |
|                                                       |                                        |                                                                               |   |
|                                                       |                                        |                                                                               |   |
| Date: November                13,                2007 | By:                                         | /s/                Gary A. Weber                                                   |   |
|                                                       |                                        | Gary                A. Weber                                                       |   |
|                                                       |                                        | Vice                President Finance & Chief                Financial Officer |   |

**33**