Index Introduction Dear Fellow Shareholders Our Products Product Characteristics Republic of South Africa Approval Accredited Medical Education Program  Physician Q&A Phase III Clinical Trials U.S. Market Opportunity Medical Readiness 2001 Highlights Form 10-K Biopure Corporate Information Shareholder Information

																												Capital in
												Common Stock																Excess																				Total
				Preferred Stock								Class A								Class B								of Par				Contributed				Notes				Treasury				Accumulated				Stockholders’
				Shares				Amount				Shares				Amount				Shares				Amount				Value				Capital				Receivable				Stock				Deficit				Equity
In thousands, except share and
per share data
Balance at October 31, 1998					5,304,102			$	53				10,742,503			$	107				117.7			$	—			$	197,495			$	24,574			$	(2,291	)		$	(1,583	)		$	(196,906	)		$	21,449
	Exercise of stock options												17,117																88																				88
	Sale of preferred stock				2,610,264				26																				30,099																				30,125
	Sale of common stock												3,500,000				35												37,667																				37,702
	Conversion of preferred stock to common stock				(7,914,366	)			(79	)			8,224,525				82												17,912																				17,915
	Stock repurchase adjustment																												300																				300
	Retirement of treasury stock												(203,278	)			(1	)											(1,582	)											1,583								—
	Equity compensation																												75																				75
	Accrued interest																																				(172	)											(172	)
	Net loss																																												(53,445	)			(53,445	)
Balance at October 31, 1999					—				—				22,280,867				223				117.7				—				282,054				24,574				(2,463	)			—				(250,351	)			54,037
	Exercise of stock options and Warrants												92,128																577																				577
	Sale of common stock												2,565,000				26												83,725																				83,751
	Equity compensation																												3,681																				3,681
	Payment of discount plus interest on
		“non-lapse” restricted shares																											2,112																				2,112
	Payment of notes receivable from Shareholders																																				556												556
	Accrued interest																																				(126	)											(126	)
	Net loss																																												(36,078	)			(36,078	)
Balance at October 31, 2000					—				—				24,937,995				249				117.7				—				372,149				24,574				(2,033	)			—				(286,429	)			108,510
	Exercise of stock options and warrants												226,550				2												1,929																				1,931
	Stock issued for interest in Reperfusion												67,270																1,511																				1,511
	Land and license rights acquired upon exercise of stock option												80,000				1												1,004																				1,005
	Retirement of treasury stock that resulted from payment of “non-lapse” restricted shares												(86,732	)			—												—																				—
	Equity compensation																												6,844																				6,844
	Payment of discount plus interest on
		“non-lapse” restricted shares																											133																				133
	Payment of notes receivable from shareholders																																				468												468
	Accrued interest																																				(90	)											(90	)
	Net loss																																												(49,419	)			(49,419	)
Balance at October 31, 2001					—			$	—				25,225,083			$	252				117.7			$	—			$	383,570			$	24,574			$	(1,655	)		$	—			$	(335,848	)		$	70,893

See accompanying notes.