Interim Management Statement

Northern 2 VCT PLC
19 November 2007



19 NOVEMBER 2007

NORTHERN 2 VCT PLC

INTERIM MANAGEMENT STATEMENT FOR THE QUARTER ENDED 31 OCTOBER 2007



Northern 2 VCT PLC presents its interim management statement for the quarter
ended 31 October 2007.  This constitutes the company's second interim management
statement for the financial year ending 31 January 2008, as required by the UK
Listing Authority's Disclosure and Transparency Rule 4.3.

The unaudited net asset value per ordinary share as at 31 October 2007 was 91.1p
(31 July 2007 90.1p).  The net asset value is stated before deducting the
interim dividend of 2.0p per share in respect of the year ending 31 January
2008, which was declared on 21 September 2007 and will be paid on 7 December
2007.

The number of ordinary shares in issue at 31 October 2007 was 47,405,172.
During the three months ended 31 October 2007 no shares were issued and a total
of 373,295 shares were re-purchased by the company for cancellation at an
average price of 81.1p per share.

Net assets at 31 October 2007 comprised the following:
                                                                                                      % of
                                                                                     £000       net assets
Unquoted investments at fair value
  as determined by the directors                                                   31,149             72.1
Quoted investments at bid price                                                     2,924              6.8
                                                                                   ------            -----
Total venture capital investments                                                  34,073             78.9
Listed fixed-interest investments                                                   5,074             11.7
                                                                                   ------            -----
Total fixed asset investments                                                      39,147             90.6
Net current assets                                                                  4,040              9.4
                                                                                   ------            -----
Net assets                                                                         43,187            100.0
                                                                                   ------            -----

The ten largest investments by valuation at 31 October 2007 were as follows:
                                                                                                      % of
                                                                                     £000       net assets
Envirotec                                                                           2,197              5.1
Crantock Bakery                                                                     1,902              4.4
John Laing Partnership                                                              1,419              3.3
TFB Group                                                                           1,316              3.0
Longhirst Venues                                                                    1,296              3.0
IG Doors                                                                            1,261              2.9
Arrow Industrial Group                                                              1,169              2.7
Develop Training                                                                    1,163              2.7
DMN                                                                                 1,145              2.7
Paladin Group (formerly Touchstone Asset Management)                                1,144              2.7
                                                                                   ------            -----
Top ten investments                                                                14,012             32.5
Other investments                                                                  20,061             46.4
                                                                                   ------            -----
Total venture capital investments                                                  34,073             78.9
                                                                                   ------            -----



Quoted investments are carried at bid price as at 31 October 2007.  Unquoted
investments are carried at fair value as at 31 October 2007 as determined by the
directors.



During the three months ended 31 October 2007 the following significant
investment transactions took place (all companies unquoted except where
otherwise indicated):



New investments:


                                                                                                    Amount
Name of company                      Business activity                                            invested
                                                                                                      £000
Promatic Group                       Manufacturer/distributor of clay target launch                    800
                                     equipment



Disposals:


                                                                                                  Carrying
                                                                 Sales          Original          value at
Name of company                                               proceeds              cost      31 July 2007
                                                                  £000              £000              £000
Ithaca Holdings (trade sale)                                     1,477               493             1,524
KCS Global Holdings (trade sale)                                 1,865               702             1,515
Nightingales Holdings (in administration)                          Nil             1,191               Nil



Ithaca Holdings, the business-to-business media services and exhibitions
contractor, was sold to the business information division of United Business
Media Plc in September 2007.  KCS Global Holdings, which provides HR and payroll
software and outsourcing services, was sold to The Sage Group plc in October
2007.  Nightingales Holdings, the mail order retailer of women's clothing, went
into administration in October 2007 following a period of poor trading which was
exacerbated by the effects of industrial action in the postal service.



Subsequent to 31 October 2007 the company has sold its holding in Barony
Universal Products to a trade purchaser for £893,000, its carrying value at 31
October 2007.  The carrying value of the investment at 31 July 2007 was
£751,000.



On 18 October 2007 the company announced proposals to launch a public offer of
up to 16 million new ordinary shares to raise up to approximately £15 million
(before expenses) and to postpone the next resolution for continuation of the
company from 2011 to 2013.  The enabling resolutions were passed by shareholders
at an extraordinary general meeting on 12 November 2007.  It is expected that a
prospectus in connection with the proposed share offer will be published by the
end of November 2007.



END



Enquiries:

Alastair Conn/Christopher Mellor, NVM Private Equity Limited - 0191 244 6000

Website:  www.nvm.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange