Final Results

Advent 2 VCT PLC
3 May 2001



Advent 2 VCT plc

Results for the year ended 28 February 2001

The Board of Advent 2 VCT announces the results of the company for the year
ended 28 February 2001.


Highlights


-     As at 28 February 2001, Advent 2 VCT had 74.4% of its investments in
      Qualifying Holdings. This exceeds the 70% minimum requirement by that
      date set by the Inland Revenue.

-     The company sold its investment in First Fibre Ltd to the German company
      ADVA AG Optical Networking for a value at completion of £10.3 million.
      The consideration was satisfied in shares and the value of Advent 2 VCT's
      holding corresponded to an increase of £8.8 million over the £1.5 million
      cost. Subsequently, £6.4 million of ADVA shares have been realised,
      resulting in a gain of £5.3 million.



                                           Year ended 28         Year ended 29
                                           February 2001         February 2000

Earnings per ordinary share                        15.1p                  1.4p

Net asset value per ordinary share                 95.3p                 98.9p

Net asset value per ordinary share                117.1p                105.2p

(includes all dividends paid and
proposed)


-     The Company revoked its investment company status on 23 October 2000,
      enabling the dividends derived from capital profits to be paid to
      shareholders. An interim dividend of 13.9p per ordinary share was paid on
      1 December 2000 to shareholders on the register at close of business on 3
      November 2000.

-     A final dividend is not being recommended.


Chairman's Statement

This is the third accounting period of Advent 2 VCT and the company has
successfully exceeded the 70% minimum requirement set by the Inland Revenue
for its investments to be in Qualifying Holdings by the third anniversary of
the company.

Progress in investment

In the year to 28 February 2001, there has been substantial development in the
portfolio. 16 new investments were made at a cost of £12.0 million and a
further £4.6 million was invested in existing portfolio companies. This brings
the total number of companies in the portfolio to 26. At 28 February 2001, the
company had 74.4% of its investments in Qualifying Holdings, which comfortably
exceeded the 70% minimum requirement set by the Inland Revenue.

Your managers have built a portfolio of early stage companies in the
information technology, communications and healthcare sectors. Market
sentiment has been very volatile in these sectors particularly with regard to
the internet and mobile communications. The exposure to the internet,
e-commerce and mobile communications is relatively modest. As a result we can
look forward to building value in the portfolio, although current market
conditions will require us to be patient since successful exits from our
investments will take longer to achieve.

Disposal

During the year, the company made its first significant realisation. The
investment in First Fibre Ltd was sold to ADVA AG Optical Networking which was
satisfied in shares of ADVA. The value of the shares received in consideration
amounted to £10.3 million against the cost of £1.5 million. £6.4 million was
subsequently realised from the sale of part of the ADVA shares received,
realising a gain of £5.3 million.

At the time of the sale transaction, the manager was locked in for a period of
6 months which restricted further sales of ADVA shares. This lock-in period
came to an end in January 2001.

On 28 February 2001, the remaining 55,609 ADVA shares held by the company were
valued at £0.7 million. The current valuation and the amount realised
represents a return of 4.7 times on the original cost.

Change to trading company status

On 23 October 2000, the company revoked its investment company status enabling
dividends derived from capital profits to be paid to shareholders. As a
result, it has been necessary to change the presentation of the accounts. The
Board's decision to adopt trading company status reflects a move in the medium
to long-term towards the payment of dividends from successful realisations of
investments in addition to the income derived from the company's fixed income
portfolio.

Dividends

The transition from investments in fixed interest securities to Qualifying
Holdings inevitably has led to a decline in the level of the company's income.

Consequently, the Board is not recommending a final dividend. Whilst the
profit and loss reserve in the balance sheet at 28 February 2001 is £
8,635,000, this balance includes a 'reserve' of £8,718,000 which cannot be
treated as realised profits of the company, and is therefore not available for
distribution.

In the interim report, the Board declared an interim dividend of 13.9p per
ordinary share which was largely due to the gain realised on the sale of ADVA
shares. The dividend was paid on 1 December 2000 to shareholders on the
register at close of business on 3 November 2000.

This brought the gross cumulative total dividends (including any associated
tax credits) paid since inception of the company to 21.8p.

Balance Sheet

The net asset value per share at 28 February 2001 was 95.3p per share,
compared with 98.9p at 29 February 2000.

The venture capital investments have been valued in accordance with the
British Venture Capital Association guidelines, under which investments are
not normally revalued above cost for at least 12 months after the date of
acquisition.

Purchase of Own shares

On 21 June 2000, the company purchased 34,000 shares. Occasional market
purchases by the company of its own shares provide an additional measure of
liquidity in the market for the company's shares and enhance the net asset
value per share for the company's remaining shareholders. Therefore it is the
policy of the company to consider repurchases of shares when they become
available.

Outlook

The company has made significant progress in the rate of investment during the
year which has enabled it to successfully meet the minimum requirement that
70% of its investments be in Qualifying Holdings.

The market is currently difficult but the Board is confident that there is
significant value in the portfolio and that this value should be gradually
recognised and should increase as the companies grow and the market sentiment
for these sectors improve.

Meanwhile, the manager is monitoring its investments very closely and
continues to build value in these companies where it can.

Roger Brooke

Chairman


Profit and Loss Account for the year ended 28 February 2001
                                                                          
                                                                                
                                                         
                                                                 Year ended 29
                                   Year ended 28                 February 2000 
                                   February 2001                  (as restated)
                                           £'000                         £'000

Investment income and deposit              1,106                          1,678
interest
Investment management fees                 (902)                          (817)
Other expenses                             (258)                          (232)
                                          ------                         ------
Operating (loss)/profit                     (54)                            629
Profit on realisation of                   5,325                             58
investments
                                          ------                         ------
Profit on ordinary activities              5,271                            687
before taxation
Tax on ordinary activities                     -                          (180)
                                          ------                         ------
Profit on ordinary activities              5,271                            507
after taxation
Dividends                                (4,861)                          (805)
                                          ------                         ------
Balance transferred to/(from)                410                          (298)
reserves
                                          ------                         ------
Earnings per share                         15.1p                           1.4p
                                          ------                         ------


Statement of Total Recognised Gains and Losses


                                           Year ended 28         Year ended 29
                                           February 2001         February 2000 
                                                   £'000                 £'000
Profit for the year                                5,271                   507
Unrealised premium on sale of                        123                     -
investment
Unrealised (loss)/gain on                        (1,795)                 1,445
revaluation of investments
                                                  ------                ------
Total recognised gains and losses                  3,599                 1,952
relating to the year
                                                  ------                ------

Balance Sheet at 28 February 2001
                                                  2001                   2000   
                                                 £'000                  £'000 
                                                                 (as restated)

                                                 
Fixed assets
Investments                                     28,076                   29,302
Current assets
Debtors                                          1,045                    1,452
Money market and other deposits                  4,425                    5,302
Cash                                               139                      249
                                                ------                   ------
                                                 5,609                    7,003
Creditors: amounts falling due within one year  (363)                   (1,689)
                                                ------                   ------
Net current assets                               5,246                    5,314
                                                ------                   ------
Total assets less current liabilities           33,322                   34,616
                                                ------                   ------
Capital and reserves
Called-up share capital                          1,748                    1,750
Share premium account                           22,750                   22,750
Capital redemption reserve                           2                        -
Revaluation reserve                                187                    1,859
Profit and loss account                          8,635                    8,257
                                                ------                   ------
Equity shareholders' funds                      33,322                   34,616
                                                ------                   ------
Net asset value per ordinary share               95.3p                    98.9p
                                                ------                   ------


Cash Flow Statement for the year ended 28 February 2001

                                                                2001       2000 
                                                               £'000      £'000
Cash flow from operating activities and returns on
investment
Investment income received                                     1,282      1,993
Deposit and similar interest received                            132        190
Investment management fees paid                                (902)      (816)
Secretarial fees paid                                           (61)       (60)
Other cash payments                                            (280)       (68)
                                                              ------     ------
Net cash inflow from operating
activities and returns on investment                             171      1,239
                                                              ------     ------
Taxation                                                        (36)      (140)
                                                              ------     ------
Financial investment:
Purchase of listed fixed income investments                  (6,119)    (8,992)
Purchase of unquoted investments and investments quoted     (16,920)    (5,148)
on AIM
Net proceeds on sale of quoted investments                     6,223        103
Redemption and sale of listed fixed income investments        21,042     18,415
                                                              ------     ------
Net cash inflow from financial investment                      4,226      4,378
                                                              ------     ------
Equity dividends paid:
Dividends paid on ordinary shares                            (5,316)      (910)
Tax credits paid to shareholders                                 (2)      (122)
Tax credits recovered on behalf of shareholders                    2        226
                                                              ------     ------
Net cash outflow from payment of equity dividends            (5,316)      (806)
                                                              ------     ------
Net cash (outflow)/inflow before financing and liquid
resource management                                            (955)      4,671
                                                              ------     ------
Management of liquid resources:
Movement in money market and other deposits                      877    (4,560)
                                                              ------     ------
Financing:
Redemption of redeemable preference shares                      (32)          -
                                                              ------     ------
Net cash outflow from financing                                 (32)          -
                                                              ------     ------
(Decrease)/increase in cash                                    (110)        111
                                                              ------     ------

Reconciliation of movement in shareholders' funds


                                                      Year to           Year to 
                                             28 February 2001  29 February 2000
                                                        £'000             £'000
                                   
                                                

Opening shareholders' funds                    34,616                    33,469
Total recognised gains and losses               3,599                     1,952
for year
Repurchase and cancellation of                   (32)                         -
shares
Dividends appropriated                        (4,861)                     (805)
                                               ------                    ------
Closing shareholders' funds                    33,322                    34,616
                                               ------                    ------



The audit report on the full financial statements has yet to be signed.

The preliminary announcement is prepared on the same basis as set out in the
previous year's annual accounts except for the change in the presentation of
financial statements mentioned within the Chairman's Statement.

The preliminary announcement does not represent the company's statutory
accounts. The statutory accounts for the year ended 29 February 2000 have been
delivered to the Registrar.

This preliminary announcement was approved by the Board on 2 May 2001.



3 May 2001

Contacts for information:
Advent Limited:
Sir David Cooksey                            020 7630 9811
Les Gabb

Gollin/Harris:

Sorrel Dunger                                020 7324 8546

Deutsche Bank
Gary Pinkerton:                              020 7547 6847