Interim Results

Northern 2 VCT PLC
12 October 2000


NORTHERN 2 VCT PLC

12 OCTOBER 2000

UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 JULY 2000

Highlights are as follows (comparative figures for the 29 week period ended 31
July 1999 in brackets):

  * Net asset value per share                      94.5p (94.4p)
  * Net assets                         £22,856,000 (£19,623,000)
  * Investment income                        £603,000 (£250,000)
  * Net revenue before tax                   £445,000 (£146,000)
  * Revenue return per share                         1.4p (0.9p)
  * Interim dividend per share                        1.0p (Nil)

The Chairman of Northern 2 VCT, Dr Matt Ridley, made the following statement
to shareholders:

I am glad to report that your company has continued to make good progress
during the half year to July 2000.

Net asset value

The net asset value per share at 31 July 2000 was 94.5p, representing a slight
increase over the comparative figures at 31 January 2000 and 31 July 1999. The
relative lack of movement reflects the fact that at this early stage most of
the company's venture capital investments are still valued at cost.

Investments

During the period five new venture capital investments were completed at a
cost of £2.1 million. Since 31 July a further nine investments totalling £3.2
million have been completed or approved, taking the cumulative total to £9
million.

The venture capital portfolio is generally doing well. Scipher obtained a
listing on the London Stock Exchange in February and part of the holding was
subsequently sold into a strong market at a good profit. MediDesk had to
abandon its planned flotation on AiM in April and its future strategy remains
under review. During August we participated in new share issues on AiM by
Alizyme and BioFocus, whose market prices have subsequently increased
substantially. We continue to see new investment opportunities at a healthy
rate, and we are confident of meeting the Inland Revenue's January 2002
deadline for reaching the required 70% level of VCT qualifying investments.

The portfolio of fixed interest securities and bank deposits managed by
Chiswell Associates has performed steadily and has maintained a yield to
maturity of around 6%.

Revenue and dividend

The revenue return per share in the half year was 1.4p. Last year's
corresponding figure of 0.9p was for a shortened operating period following
completion of the company's initial share issue. An interim dividend of 1.0p
per share will be paid on 11 December 2000 to shareholders on the register on
17 November 2000. The amount of the 2000/2001 final dividend to be paid in
June 2001 will be determined in the light of the results for the full year,
but I remind shareholders that in the short term the trend in dividend may be
downwards as funds are moved from the fixed interest portfolio into venture
capital investments, which are generally lower yielding but have greater
potential for long-term capital appreciation.

Share issue and buy-back

The directors used their share placing authority to issue a further 2,200,000
ordinary shares during the period at a price of 103p per share, raising £2.2
million after expenses. This has proved to be a cost-effective way of
increasing the company's capital base. During June 2000 the company purchased
33,905 shares in the market for cancellation at a price of 92p. This had the
immediate effect of causing the company's mid-market share price to fall from
100p to 90p, where it has remained. Otherwise there has been very little
trading in the company's shares. However, in order to take advantage of any
future opportunity to buy back shares, we are seeking Court consent to a
reduction in the share premium account so as to create a new distributable
reserve which can then be utilised in cancelling re-purchased shares.

Prospects

With many of the UK's venture capital providers now concentrating on
investments of £5 million and above, our managers expect to maintain their
strong flow of smaller VCT-qualifying deals. With the existing portfolio
beginning to mature, this augurs well for the company's future. Your board is
actively considering the possibility of issuing a further tranche of shares
early in 2001, and an announcement will be made in due course.



The unaudited interim financial statements for the six months ended 31 July
2000 are set out below.



STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)

                Six months ended       29 weeks ended        55 weeks ended
                  31 July 2000          31 July 1999         31 January 2000
              Revenue Capital Total Revenue Capital Total Revenue Capital Total
               £000    £000   £000   £000    £000   £000   £000    £000   £000
Gains/
(losses) on   -       109     109   -       (12)    (12)  -       (11)    (11)
investments:  -       101     101   -       (166)   (166) -       (248)   (248)
Realised on   ------------- ------------- ------------- ------------- ----------
disposal
Unrealised
valuation
movements
              -       210     210   -       (178)   (178) -       (259)   (259)
Income        603     -       603   250     -       250   869     -       869
Investment    (60)    (181)   (241) (24)    (73)    (97)  (68)    (203)   (271)
management    (98)    -       (98)  (80)    -       (80)  (163)   -       (163)
fee           ------------- ------------- ------------- ------------- ----------
Other
expenses

Return on
ordinary      445     29      474   146     (251)   (105) 638     (462)   176
activities
before tax

Tax on        (113)   46      (67)  (44)    22      (22)  (152)   48      (104)
ordinary      ------------- ------------- ------------- ------------- ----------
activities

Return on
ordinary      332     75      407   102     (229)   (127) 486     (414)   72
activities
after tax
Dividends -   (242)   -       (242) -       -       -     -       -       -
interim
 - final       -     -       -     -       -       -     (485)   -       (485)  
            ------------- ------------- ------------- ------------- ----------

Transfer to/  90      75      165   102     (229)   (127) 1       (414)   (413)
(from)        ------------- ------------- ------------- -------------
----------reserves

Return per       1.4p    0.3p  1.7p    0.9p  (2.0)p (1.1)p    3.0p  (2.5)p  0.5p
share     

Dividends per
share 
  Interim         1.0p                    -                     -
  Final             -                     -                   2.2p
  

BALANCE SHEET
                                       31 July 2000 31 July 1999   31 January
                                               £000         £000         2000
                                                                         £000
Fixed asset investments
  Venture capital investments          5,536        1,221        3,849
-unlisted 
- listed                                 228          -            -
                                       ----------------- ----------------- -----
      
Total venture capital investments      5,764        1,221        3,849
Listed fixed-interest investments      15,024       10,744       14,993
                                       ----------------- -----------------
-----Total fixed asset investments          20,788       11,965       18,842
Net current assets                     2,068        7,658        1,681
                                       ----------------- -----------------
-----Net assets                             22,856       19,623       20,523
                                       ----------------- -----------------
-----Share capital                          1,210        1,040        1,101
Share premium                          21,894       18,710       19,835
Capital reserve - realised             (192)        (63)         (166)
                       - unrealised    (147)        (166)        (248)
Revenue reserve                         91           102          1
                                       ----------------- -----------------
-----Total shareholders' funds              22,856       19,623       20,523
                                       ----------------- -----------------
-----Net asset value per share                     94.5p        94.4p       
93.2p



CASH FLOW STATEMENT
                                         Six months     29 weeks     55 weeks
                                              ended        ended        ended
                                       31 July 2000 31 July 1999   31 January
                                               £000         £000         2000
                                                                         £000
Operating activities
Net revenue from ordinary activities   445          146          638
before tax                             31           (267)        (530)
Decrease/(increase) in debtors         20           158          75
Increase in creditors                  (181)        (73)         (203)
Management fees charged to capital     ----------------- ----------------- -----
reserve

Net cash inflow/(outflow) from         315          (36)         (20)
operating activities

Taxation
Corporation tax paid                   (137)        (28)         (131)

Financial investment
Purchase of investments                (4,545)      (13,414)     (21,020)
Sale/repayment of investments          2,792        1,270        1,919
                                       ----------------- -----------------
-----Net cash outflow from financial        (1,753)      (12,144)     (19,101)
investment

Equity dividends paid                  (485)        -            -

Financing
Issue of redeemable preference shares  -            -            50
Issue of ordinary shares               2,266        20,789       22,025
Share issue expenses                   (58)         (1,039)      (1,089)
Redemption of preference shares        -            -            (50)
Purchase of ordinary shares for        (31)         -            -
cancellation                           ----------------- ----------------- -----
Net cash inflow from financing         2,177        19,750       20,936
                                       ----------------- -----------------
-----Increase in cash at bank               117          7,542        1,684
                                       ----------------- -----------------
-----Analysis of cash balance
At start of period                     1,684        -            -
Net cash inflow for the period         117          7,542        1,684
                                       ----------------- -----------------
-----At end of period                       1,801        7,542        1,684
                                       ----------------- ----------------- -----

The above summary of results for the six months ended 31 July 2000 does not
constitute statutory accounts within the meaning of Section 240 of the
Companies Act 1985 and has not been delivered to the Registrar of Companies.
The figures for the 55 weeks ended 31 January 2000 have been extracted from
the financial statements for that period, which have been delivered to the
Registrar of Companies; the auditors' report on those financial statements
under Section 235 of the Companies Act 1985 was unqualified.

The interim dividend for the year ending 31 January 2001 will be paid on 11
December 2000 to shareholders on the register at the close of business on 17
November 2000.

A copy of the full interim report to shareholders for the six months ended 31
July 2000 is expected to be posted to shareholders on 25 October 2000 and will
be available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.

For further information contact:
Christopher Mellor                                        0191 244 6000
(Northern Venture Trust PLC)

Neil Baldwin                                              0113 241 0130
(Brewin Dolphin Securities Limited)