Annual Financial Report

Preliminary Announcement for

                  Oxford Technology 2 Venture Capital Trust PLC

                      for the year ended 28 February 2011

                              Chairman's Statement

                              Investment Portfolio

The  company has  a portfolio  of 16 investee  companies. However, while some of
these  are making progress  none of them  has yet achieved  a breakthrough which
will enable them to become highly successful.  And it is the nature of investing
in early stage and start-up technology companies that returns are likely to come
from  a  few  companies  which  make  large  returns  than  from  many companies
delivering modest returns.

The net assets per share at 28 February 2011 were 37p per share compared to 41p
as at 28 February 2010.  The earnings per share in the year to 28 February 2011
were  (3.6p) compared to (13.2p) in  the year to 28 February 2010. These figures
result  from the changes to the valuations of the investments during the year as
shown  in the table  on page 5, with  some investments being  valued upwards and
some being down valued based on their performance.

OT2  owns 19.6% of OC Robotics.  Now based  in a factory in Bristol, OC Robotics
is arguably the world's leading designer and manufacturer of snake-arm robots in
which the head of the snake may be driven along a 3D path in space with the rest
of  the  snake  following  the  same  path  taken  by the head.  OC Robotics has
supplied  individual robots at prices of  up to £1m for particular applications.
 The  most  recent  has  been  to  undertake  a particular maintenance task in a
nuclear  reactor in North America, which can no longer be undertaken efficiently
by  people, since the  regulations concerning the  permitted radiation dose have
been  tightened.  The breakthrough is likely  to happen when OCRobotics receives
multiple  orders  for  the  same  model  of  snake  arm  robot  for a particular
application,  as opposed to  one-off orders for  new applications.  But this has
not happened yet.

OT2  owns 9.7% of Plasma Antennas.  This company designs and supplies specialist
antennae,  which  can  be  priced  at  up  to £50,000 each. In 2007, the company
achieved  a milestone when it made its first sale.  In 2009 the company achieved
another  milestone when it received its first contract for the design and supply
of  more significant numbers of antennas for a military application. In 2010 the
company  received  its  first  order  from  a  civil  wireless equipment OEM for
development  of a selectable  multibeam antenna to  be deployed on a mass-market
pico base station product line.

OT2  owns 6.8% of Select Technology.  Though still small, Select's sales of M3i,
its  software which  sits in  a Ricoh  MFD (photocopier)  and which enable third
party  vendors to run their  software applications on the  MFD, are beginning to
rise.  These sales are at a high gross margin, and if the trend continues Select
could become a very profitable and valuable company.

OT2  also owns  small stakes  in Arecor  and Telegesis  both of which are making
excellent progress.



                        Investment Policy & Fundraising

The  Company has  built a  balanced portfolio  of investments with the following
characteristics:
·  unlisted, UK based, science, technology and engineering businesses
·  investments typically in the range of £100,000 to £500,000
·  generally located within approximately 60 miles of Oxford
                              Results for the year
Interest  on bank deposits  and investee loans  produced gross income of £11,000
(2010:  £18,000) in the year.  The loss for the year was £244,000 (2010: loss of
£871,000)  and earnings per share for the year showed a loss of 3.6p (2010: loss
of 13.2p).
                                      AGM
Shareholders  should note that the AGM for Oxford Technology 2 VCT (OT2) will be
held  on Wednesday 6th July  2011, at the Magdalen  Centre, Oxford Science Park,
starting  at 12.00 noon and will include  presentations by some of the companies
in  which the Oxford Technology  VCTs have invested. A  formal Notice of AGM has
been  included at the back  of these Accounts together  with a Form of Proxy for
those not attending.
Michael O'Regan - Chairman

6 June 2011



       Profit and Loss Account for the year ended 28 February 2011

                                    Year ended                        Year ended

                                              28/02/11                  28/02/10

                                                  £000                      £000

(Loss)/gain on disposal of                         (9)
investments held at fair value                                     68

Unrealised (loss)/gain on fair                   (154)                     (852)
value of investments

Other income                                        11                        18

Investment management fees                        (54)                      (69)

Other expenses                                    (38)                      (36)

                                ­­­­­­­­­­­­­­________                   _______



(Loss)/profit on ordinary                        (244)                     (871)
activities before tax

Taxation on profit/(loss) on                         -                         -
ordinary activities

                                                ======                    ======

(Loss)/profit on ordinary                        (244)                     (871)
activities after tax

                                                ======                    ======



Earnings per share (basic and                   (3.6)p                   (13.2)p
diluted(



                                                ======                    ======

                     Historic cost profits and losses note

                                                   Year ended         Year ended

                                                             28/02/11   28/02/10

                                                                 £000       £000

(Loss)/profit for the year:                                     (244)      (871)

Unrealised loss/(gain) on fair value of                           154        852
investments

Loss/(profit) on disposal of investments held at                    9       (68)
fair value

Profit/(loss) on disposal of investments held at                (176)      (227)
historical value

Historical cost (loss)/profit before tax                        (257)      (314)

Historical cost (loss)/profit after tax                         (257)      (314)


                                                                      Balance
sheet at 28 February 2011
                                        28 February 2011       28 February 2010
                                                  Audited                Audited

                                    £000             £000  £000             £000

Fixed assets

Investments at fair value                           2,157                  2,478

Current assets

Debtors & prepayments                  2                      2

Cash at bank                         401                    256

                                   _____                  _____

                                     403                    258

Creditors: amounts falling due      (19)                   (13)
within one year

                                   _____                  _____

Net current assets                                    384                    245

                                                    _____                  _____

Net assets                                          2,541                  2,723

                                                    =====                  =====

Capital and reserves

Called up share capital                               679                    663

Share premium                                         376                      3

Profit and loss account                             1,873                  2,131


Unrealised capital reserve                          (387)                  (401)


Shareholders' funds                                 2,541                  2,723

                                                    =====                  =====

Net asset value per share                             37p                    41p



                                                    =====                  =====




            Cash flow statement for the year ended 28 February 2011

                                                       2011 Audited 2010 Audited

                                                               £000         £000

Net cash (outflow) from operating activities                   (75)        (133)

Capital expenditure and financial investment

                               Purchase of investments         (39)        (166)

                               Disposal of investments          197           83

                                                             ______       ______

Net cash (outflow) from capital expenditure and                 158         (83)
financial investment

Net cash outflow before financing                                83        (216)

Financing

Issue of Shares                                                  65          148

Expenses paid in connection with share issue                    (3)          (9)



Net cash inflow from financing                                   62          139

Dividends paid                                                    -            -

                                                             ______       ______

(Decrease) in cash                                              145         (77)

                                                             ======       ======




Notes:

1. Basis of preparation

The   financial   statements  have  been  prepared  under  the  historical  cost
convention,  modified to include  the revaluation of  investments. The financial
statements have been prepared in accordance with applicable accounting standards
and  with  the  Statement  of  Recommended  Practice  'Financial  statements  of
investment trust companies' issued in 2009.
2. Earnings per Ordinary Share

The  calculation of  earnings per  share for  the period  is based on the profit
attributable to shareholders divided by the weighted average number of shares in
issue during the period.
3.  Valuation of Investments

Quoted  investments are stated at the bid price. Unquoted investments are stated
at fair value, where fair value is estimated after following the guidelines laid
down  by the  International Private  Equity and  Venture Capital Guidelines. The
Directors'  policy is to initially state investments  at cost and then to review
the  valuation every three months. The  Directors' may then apply an appropriate
methodology  which, as far as possible, draws on external, objective market data
such as where fair value is indicated by:
·  a material  arms length  transaction by  a third  party in  the shares of the
company,  with  discounting  for  more  junior  asset  classes, and reviewed for
impairment; or
·           a suitable  revenue or earnings  multiple where the  company is well
established  and generating maintainable profits. The  multiple will be based on
comparable  listed  companies  but  may  be  discounted  to  reflect  a  lack of
marketability; or
· the net assets of the business.
Where such objective data is not available the Directors' may choose to maintain
the  value  of  the  company  as  previously  stated  or  to discount this where
indicated by underperformance against plan.
During  the  year  ended  28 February  2006 the directors revoked the Investment
Company  status  to  enable  distributions  of  capital profits to shareholders.
 Consequently  the accounts have been prepared to include a statutory profit and
loss  account and  a note  of historical  profits and  losses in accordance with
schedule 4 of the Companies Act 2006 and Financial Reporting Standard 3 (FRS 3).

The  directors consider that this basis  of valuation of unquoted investments is
consistent with the International Private Equity and Venture Capital Guidelines.

4. General

The  financial information  set out  in this  preliminary announcement  does not
constitute  statutory accounts as defined in section 434(3) of the Companies Act
2006. The  balance sheet  at 28 February  2011 and the  profit and loss account,
cash  flow statement  and associated  notes for  the year  then ended  have been
extracted from the company's 2011 statutory financial statements.

Those  financial statements have  been delivered to  the Registrar of Companies,
contain  an  auditors'  opinion  that  is  unqualified  and  do  not include any
statement under section 498(2) or (3) of the Companies Act 2006.









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Source: Oxford Technology 2 VCT plc via Thomson Reuters ONE

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