Interim Management Statement

Octopus Titan VCT 2 plc ("Titan 2" or "Fund")

27 February 2009

Interim Management Statement
For the period from 1 November 2008 to 26 February 2009

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure
and Transparency rules, Octopus Titan VCT 2 plc presents an Interim
Management Statement for the period 1 November 2008 to 26 February
2009.

Financial highlights

                                           Three months
                                  As at 26     ended 31 Year ended 31
                             February 2009 January 2009  October 2008

Total net assets (£'000s)           13,963       14,333        14,036
Net asset value per share
("NAV")                              89.4p        91.8p         89.9p
Net revenue return after tax
(£'000s)                               223          208            94
Share price                           100p         100p          100p
Cumulative dividend - paid
and proposed since launch             0.5p         0.5p          0.5p


Investment performance
The period under review continued to  be a time of persistent  stress
for smaller companies. As  a result, over the  period to 26  February
2009, the FTSE SmallCap Index fell  by 13.9%. In contrast the NAV  of
the Fund fell  0.6% (0.5p) over  the period partly  due to the  total
write down in valuation of GB Environmental Limited and a small write
down in the Key Revolution Limited towards the end of February.

Since the end of January it has been apparent that, in the current
environment, GB Environmental Limited has been facing significant
challenges. Your investment manager has been in discussions with the
management team who have had problems with the development of new
products.  This, combined with the inability to fully exploit its
existing technologies given the current market conditions, leads your
manger to take a prudent view as to the future opportunity for the
business.

The Key Revolution fell behind its budget as a result of a longer
development period of the Mobiu product than initially forecast.  As
a result the Company approached its shareholders for additional funds
whilst streamlining the cost base within the business.  Titan 2,
along with Octopus Titan VCT 1 plc, will each be investing a further
£154,984 of equity at £24.50p per share and convertible loan stock.

That said, it is encouraging to report that the money market
portfolio managed by Goldman Sachs and the open ended investment
companies ("OEICs") managed by Octopus Investments Limited are
continuing to make a positive recovery, as reflected in the 31
January and 26 February NAVs, after the turmoil of the latter half of
2008. At 31 October, when market turmoil was at its height, the
portfolio of bonds, money market funds and OEICs was showing a
significant loss, most of which has now been recovered. However, your
board is aware that these are still uncertain times and the
performance of these funds is being continuously monitored.
Unfortunately these gains have been more than offset in February by
the write-down of GB Environmental Limited and the subsequent
intended investment in The Key Revolution Limited at a lower price.

In January,  Titan  2 made  an  investment of  £559,000  into  Zoopla
Limited, an  award-winning online  property information  service  and
community website,  presenting  information on  house  pricing,  free
valuation  estimates,  for   sale  listings,   and  local   community
information. Zoopla has  become the  UK's leading  website for  house
prices and value data, as  it provides the most comprehensive  source
of residential property market information. It is also the UK's  most
active property community, with over a million user contributions  to
its website in 2008. Since the investment Zoopla has launched  estate
agent listings on  a pay-for-performance  basis and  believes it  can
become the premier UK  website for those  interested in the  property
market.

Qualifying Investment Portfolio

Company            Investment class Carrying value   % of equity held
                                             £'000        by Titan 2
True Knowledge
Limited                    Unquoted            682               6.8%
Calastone Limited          Unquoted            635               7.5%
Zoopla Limited             Unquoted            560               4.9%
The Key Revolution
Limited                    Unquoted            150              10.0%
GB Environmental
Limited                    Unquoted              -              11.3%


By value, the portfolio is approximately 17% invested in unquoted
companies and 83% invested in money market securities, OEICs and
cash.

Pipeline
The current market presents challenges, but also brings opportunities
- historically investment into small companies during a downturn
brings especially high returns in subsequent years. Sale prices for
smaller companies will continue to fall as business owners adjust
their expectations to current market realities. Our view is that
there will be tremendous investment opportunities in this
environment.

Dividends
The final dividend of 0.5p per share for the year ended 31 October
2008 will be paid on 9 April 2009 to those shareholders who are on
the register on 13 March 2009.

Investment objective
Our focus is on providing early stage, development and expansion
funding to unquoted UK smaller companies. These companies have great
potential but need support. Each has the opportunity to create a
large business by taking a relatively modest market share. We are
very interested in businesses that address current trends in the
market. We aim to create a balanced investment portfolio spanning
multiple industries and business sectors. Our pipeline of deals
remains very strong which is exciting and we're looking forward to
the opportunities ahead.

Material events and transactions
The Fund's Board is not aware of any other significant event or
transaction which has occurred between the 26 February 2009 and the
date of publication of this statement which would have a material
impact on the financial position on the Fund.

For further information please contact:

Alex Macpherson - Fund Manager
Octopus Ventures Limited - 020 7710 2800


ENDS

---END OF MESSAGE---




This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.