  We investigate by Lattice Boltzmann methods the effect of inertia on the
deformation and break-up of a two-dimensional fluid droplet surrounded by fluid
of equal viscosity (in a confined geometry) whose shear rate is increased very
slowly. We give evidence that in two dimensions inertia is {\em necessary} for
break-up, so that at zero Reynolds number the droplet deforms indefinitely
without breaking. We identify two different routes to breakup via two-lobed and
three-lobed structures respectively, and give evidence for a sharp transition
between these routes as parameters are varied.
