OraSure Technologies (OSUR)

PART II. OTHER INFORMATION

On April 22, 2008, a complaint was filed against us in the United States District Court for the District of New Jersey by Inverness Medical Innovations, Inc., Inverness Medical Switzerland GmbH and Church & Dwight Co., Inc., alleging that we infringed U.S. Patent No. 6,485,982. The complaint specifically refers to our OraQuick ADVANCE^® Rapid HIV-1/2 Antibody Test. The complaint seeks injunctive relief, damages and an award of attorneys’ fees. We have filed our Answer responding to the allegations in the Complaint and asserting various defenses and counterclaims.

On October 10, 2008, the plaintiffs filed a motion for summary judgment of infringement in this case, pursuant to a schedule previously established by the Court. On May 1, 2009, the Court issued an order denying the plaintiff’s motion without prejudice, and granting the plaintiffs leave to reinstate the motion following completion of the Court’s Markman hearing. The Markman process is the part of this patent infringement lawsuit where the Court determines the construction of various claim terms in the patent being asserted. A Markham hearing in this case has been scheduled for August 12, 2009.

We continue to believe that none of our products, including the OraQuick ADVANCE^® HIV test, infringes the patent asserted in this lawsuit or any other party’s intellectual property rights. We also believe that the patent asserted in this matter is invalid or unenforceable, and we intend to defend this lawsuit vigorously. We are unable at this time to determine the impact, if any, that this lawsuit may have on our business, prospects or results of operations.

There have been no material changes to the factors disclosed in Item 1A., entitled “Risk Factors,” in our Annual Report on
Form 10-K for the year ended December 31, 2008.

Pursuant to our 2000 Stock Award Plan and in connection with the vesting of restricted shares, we retired 108,619 shares to satisfy minimum tax withholding obligations.

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In addition, on August 5, 2008, our Board of Directors approved a share repurchase program pursuant to which we are permitted to acquire up to $25.0 million of outstanding shares. The following is a summary of share repurchase activity during the three months ended March 31, 2009.

Exhibits are listed on the Exhibit Index following the signature page of this Report.

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PART II. OTHER INFORMATION

On April 22, 2008, a complaint was filed against us in the United States District Court for the District of New Jersey by Inverness Medical Innovations, Inc., Inverness Medical Switzerland GmbH and Church & Dwight Co., Inc., alleging that we infringed U.S. Patent No. 6,485,982. The complaint specifically refers to our OraQuick ADVANCE^® Rapid HIV-1/2 Antibody Test. The complaint seeks injunctive relief, damages and an award of attorneys’ fees. We have filed our Answer responding to the allegations in the Complaint and asserting various defenses and counterclaims.

On October 10, 2008, the plaintiffs filed a motion for summary judgment of infringement in this case, pursuant to a schedule previously established by the Court. We expect to file our response on November 7, 2008 and the plaintiffs will have an opportunity to reply further on or before November 14, 2008.

We believe that none of our products, including the OraQuick ADVANCE^® HIV test, infringe the patent asserted in this lawsuit or any other party’s intellectual property rights. We also believe that the patent asserted in this matter is invalid or unenforceable, and we intend to defend this lawsuit vigorously. We are unable at this time to determine the impact, if any, that this lawsuit may have on our financial statements.

There have been no material changes to the factors disclosed in Item 1A., entitled “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2007.

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The following is a summary of share repurchase activity during the three months ended September 30, 2008.

Pursuant to our 2000 Stock Award Plan and in connection with the vesting of restricted shares, we retired 27,750 shares to satisfy minimum tax withholding obligations.

In addition, on August 5, 2008, our Board of Directors approved a share repurchase program pursuant to which we are permitted to acquire up to $25.0 million of outstanding shares.

Exhibits are listed on the Exhibit Index following the signature page of this Report.

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PART II. OTHER INFORMATION

On April 22, 2008, a complaint was filed against us in the United States District Court for the District of New Jersey by Inverness Medical Innovations, Inc., Inverness Medical Switzerland GmbH and Church & Dwight Co., Inc., alleging that we infringed U.S. Patent No. 6,485,982. The complaint specifically refers to our OraQuick ADVANCE^® Rapid HIV-1/2 Antibody Test. The complaint seeks injunctive relief, damages and an award of attorneys’ fees. We have filed our Answer responding to the allegations in the Complaint and asserting various defenses and counterclaims.

We believe that none of our products, including the OraQuick ADVANCE^® HIV test, infringe the patent asserted in this lawsuit or any other party’s intellectual property rights. We also believe that the patent asserted in this matter is invalid or unenforceable, and we intend to defend this lawsuit vigorously. We are unable at this time to determine the impact, if any, that this lawsuit may have on our financial statements.

There have been no material changes to the factors disclosed in Item 1A., entitled “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2007.

At our 2008 Annual Meeting of Stockholders (“Annual Meeting”) held on May 13, 2008, the following individuals were elected by the votes indicated as Class II directors of the Company for terms expiring at the 2011 Annual Meeting of Stockholders:

The terms of the following directors continued after the Annual Meeting: Jack Goldstein, Douglas G. Watson, Michael Celano, Douglas A. Michels, and Charles W. Patrick.

At the Annual Meeting, stockholders also voted on several amendments to our 2000 Stock Award Plan (“Award Plan”) to (i) increase the number of shares of Common Stock authorized for grant, (ii) extend the duration of the Award Plan and (iii) make certain other changes. Results of the vote were as follows: 23,210,435 shares were voted for approval of the amendments; 9,184,400 shares were voted against; and 128,726 shares abstained. There were 10,602,199 broker non-votes.

Lastly, stockholders also ratified the appointment of KPMG LLP as our independent registered public accounting firm for 2008. Voting results on this matter were as follows: 42,563,680 shares were voted for ratification; 411,538 shares were voted against ratification; and 150,542 shares abstained. There were no broker non-votes.

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Exhibits are listed on the Exhibit Index following the signature page of this Report.

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PART II. OTHER INFORMATION

On April 22, 2008, a complaint was filed against the Company in the United States District Court for the District of New Jersey by Inverness Medical Innovations, Inc., Inverness Medical Switzerland GmbH and Church & Dwight Co., Inc., alleging that the Company infringes U.S. Patent No. 6,485,982. The complaint specifically refers to the Company’s OraQuick ADVANCE^® Rapid HIV-1/2 Antibody Test. The complaint seeks injunctive relief, damages and an award of attorneys’ fees. We believe that none of our products, including the OraQuick ADVANCE^® HIV test, infringe the patent asserted in this lawsuit or any other party’s intellectual property rights. We also believe that the patent asserted in this matter is invalid or unenforceable, and we intend to defend this lawsuit vigorously.

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There have been no material changes to the factors disclosed in Item 1A., entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2007.

Exhibits are listed on the Exhibit Index following the signature page of this Report.

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PART II. OTHER INFORMATION

Prestige Brands Dispute

An arbitration panel has been appointed in our pending arbitration with Prestige with respect to Prestige’s acquisition of the Wartner^® cryosurgical product line in violation of a covenant not to compete in our agreement with Prestige. The parties are currently engaged in discovery, and hearings in the arbitration are scheduled to occur in late August,

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after which the arbitration panel is expected to issue a decision in this matter. The arbitrators’ decision will be final and binding on the parties and not subject to appeal.

There have been no material changes to the factors disclosed in Item 1A., entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2006.

Exhibits are listed on the Exhibit Index following the signature page of this Report.

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PART II. OTHER INFORMATION

There have been no material changes to the factors disclosed in Item 1A., entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2005.

At our 2006 Annual Meeting of Stockholders (“Annual Meeting”) held on May 16, 2006, the following individuals were elected by the votes indicated as Class III directors of the Company for terms expiring at the 2009 Annual Meeting of Stockholders:

The terms of the following directors continued after the Annual Meeting: Frank G. Hausmann, Ronny B. Lancaster, Roger L. Pringle and Douglas G. Watson. Shortly after the Annual Meeting, Dr. Jack Goldstein was appointed to fill a vacancy on the Board of Directors, to serve as a Class I Director with an initial term expiring at the Company’s 2007 Annual Meeting of Stockholders.

At the Annual Meeting, stockholders also ratified the amendment and restatement of the OraSure Technologies, Inc. 2000 Stock Award Plan (the “Award Plan”), pursuant to which equity compensation is awarded to the Company’s employees, officers and directors. Voting results on this matter were as follows: 25,017,485 shares were voted for ratification; 4,348,122 shares were voted against ratification; and 105,213 shares abstained. There were 17,229,643 broker non-votes.

At the Annual Meeting, stockholders also ratified the appointment of KPMG LLP as our independent registered public accounting firm to audit and report upon our financial statements and internal control over financial reporting for the period January 1, 2006 through December 31, 2006. Voting results on this matter were as follows: 43,563,188 shares were voted for ratification; 446,293 shares were voted against ratification; and 124,455 shares abstained.

Exhibits are listed on the Exhibit Index following the signature page of this Report.

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PART II. OTHER INFORMATION

On July 23, 2004, we filed a lawsuit against Schering-Plough Healthcare Products, Inc. for infringement of several of our patents relating to technology for the cryosurgical removal (i.e., freezing) of warts and other benign skin lesions. The suit was commenced in the United States District Court for the Eastern District of Pennsylvania, and alleges that Schering-Plough’s manufacture and sale of its Dr. Scholls^® Freeze Away™ cryosurgical wart removal product in the United States over-the-counter market infringes the following United States patents: Nos. 5,738,682; 6,092,527 and 4,865,028. We are requesting permanent injunctive relief and the payment of damages. Schering-Plough has asserted various defenses in this matter, including that its Dr. Scholls^® Freeze Away™ product does not infringe our patents and that one or more of our patents are invalid or unenforceable.

On November 2, 2005, a pretrial conference was held on this matter, at which the Court heard oral argument on motions for summary judgment filed by the parties. We expect the Court to rule on these and other motions and to set a new trial schedule in the near future.

Exhibits are listed on the Exhibit Index following the signature page of this Report.

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