Public Offers for Subscription Raise £20.7 million

NORTHERN 2 VCT PLC
22 October 1999



UNAUDITED INTERIM RESULTS
FOR THE PERIOD FROM 8 JANUARY 1999 TO 31 JULY 1999


Highlights of the company's first operating period are as follows:

*    Investment income                  £250,000

*    Net revenue before tax             £146,000

*    Revenue return per share           0.9p

*    Net assets                         £19,623,000

*    Net asset value per share          94.4p

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

'This is my first report to shareholders following the closing in mid-July of
Northern 2 VCT's public offers for subscription.  The offers raised a total of
£20.7 million, to which a further £1.2 million has subsequently been added
through private placing of shares.  Your directors are delighted with this
outcome, which was the best achieved by any new Venture Capital Trust launched
in the 1998/99 tax year, and I would like to take this opportunity to thank
shareholders for their support.

'The attached unaudited financial statements cover the period from 8 January
1999 (the date of incorporation of the company) to 31 July 1999, although the
company has only been fully operational since 21 April when its listing on the
London Stock Exchange became effective.

'NET ASSET VALUE'

'The unaudited net asset value per share at 31 July 1999 was 94.4p, compared
with an opening value (net of issue expenses) of 95.0p.  The small decline in
the period is attributable to the fall in the fixed interest market in June
and July, which gave rise to a deficit on revaluation of listed fixed-interest
investments (all of which are relatively short dated) at the balance sheet
date.
We expect to hold most of these investments to maturity and so achieve our
targeted redemption yield.

'INVESTMENTS'

'During the period the bulk of the share issue proceeds remained in the
portfolio of fixed interest securities and bank deposits managed by Chiswell
Associates.  By 31 July our venture capital managers had completed three
investments involving a total commitment of £1.2 million, and subsequent
completions have taken the count to five investments totalling £2.0 million. 
We are continuing to see a good flow of investment opportunities.

'REVENUE AND DIVIDEND'

'The statement of total return for the period to 31 July 1999 includes the
investment income derived from the proceeds of share allotments, which took
place on various dates between March and July.  Shareholders will appreciate
that this is not representative of a normal half year's ongoing activities. 
As stated in the prospectus, the company's first dividend will be paid in June
2000 as a final dividend in respect of the period ending 31 January 2000, with
subsequent dividends paid half-yearly in December and June following the
announcement of each year's interim and final results.

'MANAGEMENT AGREEMENT'

'Your company presently has a management agreement with Northern VCT Managers
Limited (NVCTM), a subsidiary undertaking of Northern Venture Managers Limited
(NVM).  For reasons of administrative efficiency it is now intended that NVM
itself will be appointed as manager in place of NVCTM, on identical terms and
conditions.  This change is purely technical and will have no adverse impact
on Northern 2 VCT.

'PROSPECTS'

'Your company's sound start provides an excellent foundation for its future
investment activities.  As the UK venture capital market becomes ever more
concentrated on investments of £5 million and above, we expect continuing
strong demand from smaller unlisted companies to present good opportunities for
Northern 2 VCT.  This is a high-risk area in which we cannot expect every
investment to succeed.  But the potential rewards from those that do succeed
can be great.'

The unaudited interim financial statements for the period from 8 January 1999
to 31 July 1999 are set out below.


STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
FOR THE PERIOD FROM 8 JANUARY 1999 TO 31 JULY 1999
                                  Revenue   Capital     Total
                                     £000      £000      £000
Gains/(losses) on listed fixed-  -         (178)    (178)
interest investments
Income                           250       -        250
Investment management fee        (24)      (73)     (97)
Other expenses                   (80)      -        (80)
                                 --------  -------- --------
                                 -         -        -
Return on ordinary activities    146       (251)    (105)
before tax
Tax on ordinary activities       (44)      22       (22)
                                 --------  -------- --------
                                 -         -        -
Return on ordinary activities    102       (229)    (127)
after tax for the period         --------  -------- --------
                                 -         -        -
Return per share                     0.9p    (2.0)p    (1.1)p

BALANCE SHEET
AS AT 31 JULY 1999
                                                   £000
Fixed asset investments:                           
  Venture capital investments -unlisted            1,221
  Listed fixed-interest investments                10,744
                                                   ---------
                                                   -
Total fixed asset investments                      11,965
Net current assets                                 7,658
                                                   ---------
                                                   -
Net assets                                         19,623
                                                   ---------
                                                   -
Capital and reserves                               
Share capital                                      1,040
Share premium                                      18,710
Capital reserve - realised                         (63)
               - unrealised                        (166)
Revenue reserve                                    102
                                                   ---------
                                                   -
Total equity shareholders' funds                   19,623
                                                   ---------
                                                   -
Net asset value per share                          94.4p
The above summary of results for the period from 8 January 1999 to 31 July
1999 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.
A copy of the full interim report to shareholders for the period ended 31 July
1999 is expected to be posted to shareholders on 28 October 1999 and will be
available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.