(State\ue000 or\ue000 other jurisdiction\ue000 of incorporation)

Trust\ue000 (the\ue000 \u201cGamma\ue000 Trust\u201d),\ue000 of\ue000 which\ue000 Phillip\ue000 Frost,\ue000 M.D.,\ue000 the\ue000 Company\u2019s\ue000 Chairman\ue000 and\ue000 CEO,\ue000 is\ue000 the\ue000 sole\ue000 trustee,\ue000 agreed\ue000 to\ue000 make\ue000 a\ue000 $20\ue000 million
investment\ue000 in\ue000 the\ue000 Company.\ue000 Under\ue000 the\ue000 terms\ue000 of\ue000 the\ue000 investment,\ue000 the\ue000 Company\ue000 will\ue000 issue\ue000 to\ue000 the\ue000 Gamma\ue000 Trust\ue000 20,000,000\ue000 shares\ue000 of\ue000 the
Company\u2019s\ue000 common\ue000 stock,\ue000 par\ue000 value\ue000 $.01\ue000 (the\ue000 \u201cShares\u201d),\ue000 at\ue000 $1.00\ue000 per\ue000 share,\ue000 representing\ue000 an\ue000 approximately\ue000 20%\ue000 discount\ue000 to\ue000 the\ue000 average
closing\ue000 price\ue000 of\ue000 the\ue000 Company\u2019s\ue000 common\ue000 stock\ue000 on\ue000 the\ue000 NYSE\ue000 Alternext\ue000 U.S.\ue000 Exchange\ue000 immediately\ue000 preceding\ue000 the\ue000 effective\ue000 date\ue000 of\ue000 Audit
Committee\ue000 and\ue000 stockholder\ue000 approval\ue000 of\ue000 the\ue000 transaction\ue000 (the\ue000 \u201cInvestment\u201d).\ue000 The\ue000 Shares\ue000 issued\ue000 in\ue000 the\ue000 Investment\ue000 will\ue000 be\ue000 restricted\ue000 securities,
subject\ue000 to\ue000 a\ue000 two\ue000 year\ue000 lockup,\ue000 and\ue000 no\ue000 registration\ue000 rights\ue000 have\ue000 been\ue000 granted.

approved\ue000 the\ue000 Investment\ue000 by\ue000 one\ue000 or\ue000 more\ue000 members\ue000 of\ue000 the\ue000 Frost\ue000 Group,\ue000 LLC,\ue000 a\ue000 private\ue000 investment\ue000 group\ue000 controlled\ue000 by\ue000 Dr.\ue000 Frost,\ue000 on\ue000 February\ue000 13,
2009.\ue000 Stockholder\ue000 approval\ue000 was\ue000 sought\ue000 in\ue000 order\ue000 to\ue000 comply\ue000 with\ue000 applicable\ue000 rules\ue000 of\ue000 the\ue000 NYSE\ue000 Alternext\ue000 U.S.\ue000 Exchange.\ue000 Stockholder\ue000 approval\ue000 of
the\ue000 Investment\ue000 was\ue000 in\ue000 the\ue000 form\ue000 of\ue000 a\ue000 written\ue000 consent\ue000 of\ue000 stockholders\ue000 in\ue000 lieu\ue000 of\ue000 a\ue000 special\ue000 meeting\ue000 in\ue000 accordance\ue000 with\ue000 the\ue000 relevant\ue000 sections\ue000 of\ue000 the
Delaware\ue000 General\ue000 Corporation\ue000 Law.\ue000 The\ue000 Company\ue000 intends\ue000 to\ue000 file\ue000 with\ue000 the\ue000 Securities\ue000 and\ue000 Exchange\ue000 Commission\ue000 and\ue000 mail\ue000 to\ue000 stockholders\ue000 an
Information\ue000 Statement\ue000 informing\ue000 our\ue000 stockholders\ue000 of\ue000 the\ue000 Investment\ue000 and\ue000 the\ue000 approval\ue000 of\ue000 the\ue000 issuance\ue000 of\ue000 the\ue000 Shares.\ue000 The\ue000 Closing\ue000 of\ue000 the
Investment\ue000 and\ue000 the\ue000 issuance\ue000 and\ue000 delivery\ue000 of\ue000 the\ue000 Shares\ue000 is\ue000 expected\ue000 to\ue000 occur\ue000 approximately\ue000 twenty\ue000 (20)\ue000 days\ue000 after\ue000 the\ue000 mailing\ue000 of\ue000 the
Information\ue000 Statement\ue000 to\ue000 stockholders,\ue000 which\ue000 we\ue000 currently\ue000 anticipate\ue000 will\ue000 be\ue000 on\ue000 or\ue000 around\ue000 March\ue000 26,\ue000 2009;\ue000 provided\ue000 however,\ue000 that\ue000 that\ue000 the
Closing\ue000 of\ue000 the\ue000 Investment\ue000 and\ue000 issuance\ue000 and\ue000 delivery\ue000 of\ue000 the\ue000 Shares\ue000 is\ue000 subject\ue000 to\ue000 the\ue000 expiration\ue000 or\ue000 termination\ue000 of\ue000 any\ue000 waiting\ue000 period\ue000 under\ue000 the
Federal\ue000 Trade\ue000 Commission\u2019s\ue000 Hart-Scott-Rodino\ue000 Antitrust\ue000 Improvements\ue000 Act\ue000 of\ue000 1976,\ue000 as\ue000 amended\ue000 (\u201cHSR\ue000 Act\u201d)\ue000 and\ue000 the\ue000 rules\ue000 of\ue000 the\ue000 Federal
Trade\ue000 Commission\ue000 relating\ue000 to\ue000 the\ue000 HSR\ue000 Act.

Officer\ue000 of\ue000 OPKO,\ue000 Dr.\ue000 Rao\ue000 Uppaluri,\ue000 the\ue000 Company\u2019s\ue000 Chief\ue000 Financial\ue000 Officer,\ue000 and\ue000 Mr.\ue000 Steven\ue000 D.\ue000 Rubin,\ue000 the\ue000 Company\u2019s\ue000 Executive\ue000 Vice\ue000 President- Administration\ue000 and\ue000 a\ue000 director.\ue000 Following\ue000 the\ue000 Investment,\ue000 the\ue000 Gamma\ue000 Trust\ue000 will\ue000 be\ue000 deemed\ue000 to\ue000 beneficially\ue000 own\ue000 in\ue000 the\ue000 aggregate\ue000 approximately 52%\ue000 of\ue000 the\ue000 Company\u2019s\ue000 common\ue000 stock.

\ue000\ue000\ue000\ue000\ue000The\ue000 information\ue000 disclosed\ue000 under\ue000 Item\ue000 1.01\ue000 of\ue000 this\ue000 report\ue000 is\ue000 incorporated\ue000 into\ue000 this\ue000 Item\ue000 3.02\ue000 in\ue000 its\ue000 entirety.\ue000 The\ue000 issuance\ue000 of\ue000 the\ue000 common\ue000 stock will\ue000 be\ue000 exempt\ue000 from\ue000 the\ue000 registration\ue000 requirements\ue000 under\ue000 the\ue000 Securities\ue000 Act\ue000 of\ue000 1933,\ue000 as\ue000 amended,\ue000 pursuant\ue000 to\ue000 Section\ue000 4(2)\ue000 thereof,\ue000 because\ue000 the transaction\ue000 does\ue000 not\ue000 involve\ue000 a\ue000 public\ue000 offering.