Final Results

27 MARCH 2009

NORTHERN 2 VCT PLC

RESULTS FOR THE YEAR ENDED 31 JANUARY 2009

Northern 2 VCT PLC  is a Venture Capital  Trust (VCT) managed by  NVM
Private Equity.  The trust invests mainly in unquoted venture capital
holdings and  aims  to provide  high  long-term tax-free  returns  to
shareholders through  a combination  of  dividend yield  and  capital
growth.

Financial highlights - year ended 31 January 2009:
(comparative figures as at 31 January 2008 in italics):



                                                 2009    2008
*               Net assets                      £39.7m  £43.8m

*               Net asset value per share        69.8p   89.1p

*               Return/(loss) per share
                Revenue                           2.6p    2.5p
                Capital                        (16.8)p    3.9p
                Total                          (14.2)p    6.4p

*               Dividend per share proposed
                in respect of the year
                Revenue                           2.5p    2.5p
                Capital                           3.0p    3.5p
                Total                             5.5p    6.0p

*               Cumulative return to
                shareholders since launch
                Net asset value per share        69.8p   89.1p
                Dividends paid per share*        41.4p   35.4p
                Net asset value plus dividends
                paid per share                  111.2p  124.5p

*               Share price at end of year       51.0p   80.5p


*Excluding proposed final dividend


For further information, please contact:


NVM Private Equity Limited
Alastair Conn/Christopher Mellor 0191 244 6000
Website:  www.nvm.co.uk
Lansons Communications
Karen Mignon                     020 7294 3685



NORTHERN 2 VCT PLC

CHAIRMAN'S STATEMENT

My report is set against  an extremely difficult background for  most
investment companies.  The  past year  has seen the  UK economy  move
sharply into  recession.   The  global  financial  system  is  in  an
extremely fragile state.  The operating environment for businesses in
the UK has been deeply affected  by the reduced availability of  bank
finance, the fall  in consumer  demand, the weakness  of the  housing
market and a general lack of confidence in virtually all parts of the
economy.  The UK stock market has fallen to a six-year low and  there
appears to be little reason for optimism in the short to medium term.

In this context it is perhaps unsurprising that your company has  had
a  difficult  year  so  far  as  asset  values  are  concerned.   The
accompanying results show a net asset value (NAV) per share of  69.8p
as at 31 January 2009 and a  negative total return per share for  the
year (before dividends) of 14.2p, equivalent to 15.9% of the  opening
net asset value.   This disappointing outcome  should however be  set
against the fact that over the  same period the FTSE All-Share  index
produced a negative total return of 27.8%.  Notwithstanding the  fall
in NAV, investment income and realised gains in the year held up well
and the directors  are pleased to  declare a total  dividend for  the
year of 5.5p per share, in line with our previously stated objective.

Investment portfolio
During the year six new venture capital investments (two of which are
AIM-quoted) were acquired at a cost of £4.6 million.  Six investments
were fully  exited  and the  total  disposal proceeds  for  the  year
amounted to £7.2 million.  The portfolio at 31 January 2009 comprised
48  holdings  with  a  book  value  of  £22.9  million.    Investment
valuations generally have  been depressed by  a combination of  lower
price-earnings ratios applying to comparable industry sectors in  the
quoted markets and some falls in underlying company profitability and
asset values.  The board  continues to take  a cautious and  rigorous
approach to valuing  the portfolio and  has marked down  a number  of
individual holdings, which we believe is prudent and realistic in the
current circumstances.

Despite these lower valuations  it is noteworthy  that no company  in
the  portfolio  actually  failed   during  the  year,  although   our
investment in DMN was sold for a token consideration which realised a
substantial loss and  we have made  appropriate provisions against  a
number of other companies  where prospects are presently  uncertain.
DxS has made strong progress and is now our largest holding by value,
and several other investments have defied the challenging  conditions
to report  excellent  results.   Developments in  the  portfolio  are
discussed in more detail in the business review in the annual report.

Revenue and dividends
The revenue return per share for the year was marginally higher  than
last year at 2.6p, enabling the revenue dividend to be maintained  at
2.5p per share for the  eighth successive year.  The venture  capital
portfolio continued to  contribute a  strong flow of  income and  the
revenue account also benefited from the interest income on the  funds
subscribed in the public  share offer as well  as the exemption  from
VAT on management fees referred to below.  In addition we are able to
distribute  realised  gains  from   the  venture  capital   portfolio
equivalent to 3.0p per share, making a total dividend for the year of
5.5p which is  in line with  the objective  we set out  in 2007.   An
interim dividend of 2.0p per share was paid in December 2008 and  the
proposed final  dividend  of 3.5p  per  share will,  if  approved  by
shareholders at the annual general meeting, be paid on 5 June 2009 to
shareholders on the register on 1  May 2009.  This payment will  take
the cumulative  total  of dividends  declared  by the  company  since
inception to 44.9p per share.

We do not expect to achieve  a similar level of investment income  in
the year ending 31  January 2010, with  interest rates on  short-term
deposits drastically  reduced  and some  portfolio  companies  coming
under increasing pressure from their bankers to suspend dividend  and
interest payments.   This means  that we  will be  more reliant  than
hitherto on realised  capital gains  in order to  maintain the  total
dividend, and  I  am glad  to  report that  in  this regard  the  new
financial year has started well with the sale of Pivotal Laboratories
Holdings in March 2009.  However  with market conditions unlikely  to
improve in  the  near  future, the  challenge  of  achieving  further
realisations on  acceptable  terms  should  not  be  underestimated.
Shareholders should therefore  recognise that in  the short term  our
target annual dividend of 5.5p per share may not be sustainable.

Shareholder issues
The company's public offer of new ordinary shares for subscription in
the 2007/08 and 2008/09 tax years, launched in November 2007,  closed
in April 2008 having raised a total of £9.5 million - a  satisfactory
outcome.  A further £0.3 million was subscribed for new shares during
the year  through the  company's  dividend investment  scheme,  under
which investors can currently claim income  tax relief at 30% on  the
amount invested.

During the  year  the  company  purchased  for  cancellation  742,786
ordinary shares,  equivalent  to  approximately 1.5%  of  the  issued
capital at the start of the year, at a total cost of £586,000.   This
buy-back activity was concentrated  in the earlier  part of the  year
and in recent months  we have stood back  from the market because  of
the volatility of  asset prices  generally.  However  it remains  the
board's policy  to buy  back  the company's  ordinary shares  in  the
market at a 10% discount to NAV, subject to market conditions and the
terms of the authority granted by shareholders.

The turmoil  in  the  financial markets  has  produced  various  side
effects, one of which  was the failure of  our corporate brokers  and
market-makers,  Landsbanki  Securities  (UK),  in  October  2008.   A
successor  firm,  Teathers,  was   appointed  by  your  company   but
regrettably in March  2009 this  firm in  turn was  obliged to  cease
trading due to the  financial difficulties of  its parent group.   We
are presently  reviewing the  future provision  of corporate  broking
services.  The most obvious result of these disruptions has been  the
volatility of the company's share price, which has been trading at  a
discount to NAV of over 40%  during the recent closed period  leading
up to the announcement of these annual results.  Although in the long
run it is our objective to stimulate secondary market demand for  the
company's shares by maintaining an attractive dividend yield, in  the
immediate future  we may  have  to make  more  extensive use  of  our
buy-back powers in order to restore the discount to a more acceptable
level in the short term.

VAT on management fees
Following the Chancellor of the Exchequer's announcement in the  2008
Budget that investment management  fees paid by  VCTs were to  become
exempt from VAT,  HM Revenue  & Customs has  acknowledged that  under
European Union VAT law this  exemption should have applied from  1990
onwards.  Our managers had already submitted a claim for repayment of
VAT previously paid and your  company has so far recovered  £414,000,
which has  been  recognised  as  a  separate  credit  in  the  income
statement.  It is possible that a further repayment will be  obtained
but the position is not sufficiently clear-cut for us to predict  the
outcome at this stage.

The ongoing saving in VAT on management fees is especially welcome at
a time when the Government's policy of driving down interest rates is
having a significant effect on our investment income.

VCT qualifying status
The company has continued to meet the qualifying conditions laid down
by HM Revenue & Customs for  maintaining its approval as a VCT.   The
board retains PricewaterhouseCoopers LLP  as independent advisers  on
VCT taxation matters.

Board of directors
In April  2008 Matt  Ridley retired  from the  board, having  chaired
Northern 2 VCT since  its inception in 1999.   I would like to  thank
Matt on behalf of shareholders and the board for his contribution  to
the company over the first nine years of its life.  I am grateful  to
my colleagues for  their support  and encouragement  during what  has
been by any measure an interesting first year in the chair.

Prospects
The immediate outlook for  the UK economy is  uncertain and it  seems
likely that  the  financial  markets  will  remain  depressed  for  a
considerable period into the future.  The flow of new venture capital
deals has  slowed  considerably  and your  board  and  managers  will
continue to  take  a  cautious  approach  to  making  new  investment
commitments.  Nevertheless  our  experience  of  previous  recessions
suggests  that  in  time  there  will  be  opportunities  to  acquire
fundamentally sound businesses at  attractive valuations with a  view
to benefiting from the  eventual recovery.  In  the meantime, with  a
defensively managed portfolio  and ample liquid  funds, the  emphasis
will remain on ensuring as far  as possible that our company is  well
placed to emerge from the present downturn in a strong position.

David Gravells
Chairman


The audited financial statements for  the year ended 31 January  2009
are set out below.


INCOME STATEMENT
for the year ended 31 January 2009


                Year ended 31 January 2009      Year ended 31 January
                                                                2008
                 Revenue   Capital   Total  Revenue  Capital   Total
                    £000      £000    £000     £000     £000    £000
Gain on
disposal of
  investments          -       784     784        -    1,759   1,759
Movements in
fair value
  of                   -    (9,985) (9,985)       -      802     802
investments
                  ------    ------  ------   ------   ------  ------
                       -    (9,201) (9,201)       -    2,561   2,561
Income             2,456         -   2,456    2,111        -   2,111
Investment          (246)     (740)   (986)    (253)    (968) (1,221)
management fee
Recoverable VAT       99       315     414        -        -       -
Other expenses      (298)        -    (298)    (266)       -    (266)
                  ------    ------  ------   ------   ------  ------
Return on
ordinary
  activities       2,011    (9,626) (7,615)   1,592    1.593   3,185
before tax
Tax on return
on
  ordinary          (538)      120    (418)    (416)     303    (113)
activities
                  ------    ------  ------   ------   ------  ------
Return on
ordinary
  activities       1,473    (9,506) (8,033)   1,176    1,896   3,072
after tax
                  ------    ------  ------   ------   ------  ------
Return/(loss)        2.6p   (16.8)p (14.2)p     2.5p     3.9p    6.4p
per share



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 January 2009


                                    Year ended       Year ended
                               31 January 2009  31 January 2008
                                          £000             £000
Equity shareholders' funds
  at 1 February 2008                    43,753           42,909
Return on ordinary
  activities after tax                  (8,033)           3,072
Dividends recognised
  in the year                           (3,005)          (3,109)
Net proceeds of share issues             7,573            2,038
Shares purchased for
  Cancellation                            (586)          (1,157)
                                        ------           ------
Equity shareholders' funds
  at 31 January 2009                    39,702           43,753
                                        ------           ------



BALANCE SHEET
as at 31 January 2009


                                    31 January  31 January
                                          2009        2008
                                          £000        £000
Venture capital investments
  Unquoted                              21,090      29,326
  Quoted                                 1,823       2,349
                                        ------      ------
Total venture capital investments       22,913      31,675
Listed fixed-interest investments        4,636       5,066
                                        ------      ------
Total fixed asset investments           27,549      36,741
                                        ------      ------
Current assets:
  Debtors                                  813         355
  Cash and deposits                     11,891       7,452
                                        ------      ------
                                        12,704       7,807
Creditors (amounts falling due
  within one year)                        (551)       (795)
                                        ------      ------
Net current assets                      12,153       7,012
                                        ------      ------

Net assets                              39,702      43,753
                                        ------      ------


Capital and reserves:
Called-up equity share capital           2,843       2,456
Share premium                           34,021      26,872
Capital redemption reserve                 337         300
Capital reserve - realised               8,157       8,727
Capital reserve - unrealised            (6,863)      4,396
Revenue reserve                          1,207       1,002
                                        ------      ------
Total equity shareholders' funds        39,702      43,753
                                        ------      ------
Net asset value per share                 69.8p       89.1p



CASH FLOW STATEMENT
for the year ended 31 January 2009


                                         Year ended       Year ended
                                    31 January 2009  31 January 2008
                                       £000    £000     £000    £000
Cash flow statement
Net cash inflow from
  operating activities                          574            1,283
Taxation:
Corporation tax paid                           (108)            (106)
Financial investment:
Purchase of investments              (7,864)          (8,066)
Sale/repayment of
  Investments                         7,855           14,159
                                     ------           ------
Net cash inflow/(outflow)
  from financial investment                      (9)           6,093
Equity dividends paid                        (3,005)          (3,109)
                                             ------           ------
Net cash inflow/(outflow)
  before financing                           (2,548)           4,161
Financing:
Issue of shares                       7,999            2,146
Share issue expenses                   (426)            (108)
Purchase of shares
  for cancellation                     (586)          (1,157)
                                     ------           ------
Net cash inflow from                          6,987              881
financing
                                             ------           ------
Increase in cash and                          4,439            5,042
deposits
                                             ------           ------
Reconciliation of return
before tax to net cash flow
from
operating activities
Return on ordinary
  activities before tax                      (7,615)           3,185
Gain on disposal of                            (784)          (1,759)
investments
Movements in fair value of                    9,985             (802)
investments
Decrease/(increase) in                         (458)             116
debtors
Increase/(decrease) in                         (554)             543
creditors
                                             ------           ------
Net cash inflow from
  operating activities                          574            1,283
                                             ------           ------
Reconciliation of movement
in net funds
                         1 February      Cash flows  31 January 2009
                              2008
                              £000             £000             £000
Cash at bank                 7,452            4,439           11,891
                            ------           ------           ------



INVESTMENT PORTFOLIO SUMMARY
as at 31 January 2009


                                              Cost Valuation % of net
                                              £000      £000   assets
                                                             by value
Fifteen largest venture capital investments

DxS                                            684     2,083      5.2
Envirotec                                      975     1,744      4.4
Paladin Group                                1,307     1,567      4.0
Pivotal Laboratories Holdings                  857     1,563      3.9
Crantock Bakery                              1,107     1,406      3.6
Britspace Holdings                           2,230     1,295      3.3
Axial Systems Holdings                       1,000     1,000      2.5
Closerstill Holdings                         1,000     1,000      2.5
Optilan Group                                1,000     1,000      2.5
Abermed                                        725       989      2.5
Longhirst Venues                               353       958      2.4
S&P Coil Products                              620       834      2.1
Arleigh International                          435       769      1.9
Liquidlogic                                    169       672      1.7
Ingleby (1804)                                 633       633      1.6
                                            ------    ------    -----
                                            13,095    17,513     44.1
Other venture capital investments           15,900     5,400     13.6
                                            ------    ------    -----
Total venture capital investments           28,995    22,913     57.7
Listed fixed-interest investments            5,418     4,636     11.7
                                            ------    ------    -----
Total fixed asset investments               34,413    27,549     69.4
                                            ------
Net current assets                                    12,153     30.6
                                                      ------    -----
Net assets                                            39,702    100.0
                                                      ------    -----



BUSINESS RISKS

The board carries  out a regular  review of the  risk environment  in
which the company operates.  The main areas of risk identified by the
board are as follows:

Investment risk:  The  majority of the  company's investments are  in
small and medium-sized  unquoted and AIM-quoted  companies which  are
VCT qualifying holdings, and  which by their  nature entail a  higher
level of risk and  lower liquidity than  investments in large  quoted
companies. The  directors aim  to  limit the  risk attaching  to  the
portfolio as a whole by  careful selection and timely realisation  of
investments, by carrying out rigorous due diligence procedures and by
maintaining a wide spread  of holdings in  terms of financing  stage,
industry sector  and geographical  location.  The  board reviews  the
investment portfolio with the investment managers on a regular basis.

Financial risk:   As  most of  the  company's investments  involve  a
medium to long-term commitment and many are relatively illiquid,  the
directors consider that it is inappropriate to finance the  company's
activities through  borrowing  except  on  an  occasional  short-term
basis.  Accordingly  they  seek  to  maintain  a  proportion  of  the
company's assets in  cash or  cash equivalents in  order to  be in  a
position to take advantage of new unquoted investment opportunities.
The company has  very little  exposure to foreign  currency risk  and
does not enter into derivative transactions.

Liquidity risk:   The  company's  investments  may  be  difficult  to
realise.  The fact that a stock  is quoted on AIM does not  guarantee
its liquidity and there may be  a large spread between bid and  offer
prices.  Unquoted investments  are not traded  on a recognised  stock
exchange and are inherently illiquid.

Internal control risk:   The board  regularly reviews  the system  of
internal controls, both financial and non-financial, operated by  the
company and the manager.  These  include controls designed to  ensure
that the company's assets are safeguarded and that proper  accounting
records are maintained.

VCT qualifying status risk:  the company is required at all times  to
observe the conditions laid down in  the Income Tax Act 2007 for  the
maintenance of approved VCT status.  The loss of such approval  could
lead to  the company  losing its  exemption from  corporation tax  on
capital gains,  to  investors  being  liable to  pay  income  tax  on
dividends received from the company and, in certain circumstances, to
investors being required to  repay the initial  income tax relief  on
their investment.   The manager  keeps the  company's VCT  qualifying
status under continual review and reports to the board on a quarterly
basis.  The  board has  also retained  PricewaterhouseCoopers LLP  to
undertake an independent VCT status monitoring role.


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors  are responsible  for  preparing the  annual  financial
report in accordance  with applicable law  and regulations.   Company
law requires the directors to  prepare financial statements for  each
financial year.  Under that law the directors have elected to prepare
the financial statements in accordance with UK Accounting Standards.
The financial statements are required by law to give a true and  fair
view of  the state  of  affairs of  the company  at  the end  of  the
financial period and of the return  of the company for that  period.
In preparing these financial  statements, the directors are  required
to:


  * select suitable accounting policies and then apply them
    consistently;
  * make judgements and estimates that are reasonable and prudent;
  * state whether applicable UK Accounting Standards have been
    followed, subject to any material departures disclosed and
    explained in the financial statements;  and
  * prepare the financial statements on the going concern basis
    unless it is inappropriate to presume that the company will
    continue in business.


In relation to the financial statements for the year ended 31 January
2009, each of  the directors has  confirmed that to  the best of  his
knowledge:

  * the financial statements, which have been prepared in accordance
    with the applicable set of accounting standards, give a true and
    fair view of the assets, liabilities, financial position and
    profit or loss of the company;  and
  * the directors' report includes a fair review of the development
    and performance of the business and the position of the company
    together with a description of the principal risks and
    uncertainties which it faces.


The directors  are also  responsible  for keeping  proper  accounting
records that  disclose  with  reasonable accuracy  at  any  time  the
financial position of the company and enable them to ensure that  its
financial statements comply with the  Companies Act 1985.  They  have
general responsibility for taking such  steps as are reasonably  open
to them to  safeguard the assets  of the company  and to prevent  and
detect fraud and other irregularities.

Under  applicable  law  and  regulations,  the  directors  are   also
responsible   for   preparing   a   directors'   report,   directors'
remuneration report and  corporate governance  statement that  comply
with that law and those regulations.

The company's financial statements are  published on the NVM  Private
Equity Limited  website.   The  maintenance  and  integrity  of  this
website is  the  responsibility  of  NVM and  not  of  the  company.
Visitors to  the website  should  be aware  that legislation  in  the
United  Kingdom  governing  the  preparation  and  dissemination   of
financial  statements   may   differ  from   legislation   in   other
jurisdictions.


OTHER MATTERS

The above summary of results for the year ended 31 January 2009  does
not constitute statutory financial  statements within the meaning  of
Section 240 of the Companies Act  1985 and has not been delivered  to
the Registrar of Companies.   Statutory financial statements will  be
filed with the Registrar of Companies in due course;  the independent
auditors' report on those financial  statements under Section 235  of
the Companies  Act  1985  is  unqualified  and  does  not  contain  a
statement under Section 237(2) or (3) of the Companies Act 1985.
The proposed final dividend of 3.5p  per share for the year ended  31
January 2009 will,  if approved by  shareholders, be paid  on 5  June
2009 to shareholders on  the register at the  close of business on  1
May 2009.
The full annual  report including financial  statements for the  year
ended 31 January 2009 is expected to be posted to shareholders on  14
April 2009 and  will be  available to  the public  at the  registered
office of  the  company  at Northumberland  House,  Princess  Square,
Newcastle upon Tyne  NE1 8ER and  on the NVM  Private Equity  Limited
website, www.nvm.co.uk.
ENDS

---END OF MESSAGE---




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