Investment of Funds

T2 Income Fund Limited
17 August 2006


Press Release                                   Source: T2 Income Fund Limited.

T2 Income Fund Limited Announces Investment
Thursday, 17 August 2006

GUERNSEY - 17 August 2006 - T2 Income Fund Limited (traded on the AIM market of
the London Stock Exchange plc: T2I) announced today that it has been repaid it's
investment of approximately £2,700,000 in secured second-lien term notes issued
by an enterprise resource planning systems company as part of that company's
refinancing of its credit facilities. T2 Income Fund has subsequently invested
the proceeds from the repayment and approximately an additional £500,000, for a
total of £3,200,000, in newly issued secured first lien notes of the same
company.

T2 Income Fund Limited generated a capital gain of approximately £45,000 on its
original investment as a result of this refinancing.

About T2 Income Fund Limited

We are a closed-ended Guernsey based exempt investment company which invests
primarily in the debt and equity securities of small to medium sized companies,
with a particular focus on technology-related companies.  Companies interested
in learning more about financing opportunities should contact Barry Osherow at
[phone]

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent
uncertainties in predicting future results and conditions. Any statements that
are not statements of historical fact (including statements containing the words
'believes,' 'plans,' 'anticipates,' 'expects,' 'estimates' and similar
expressions) should also be considered to be forward-looking statements. Certain
factors could cause actual results and conditions to differ materially from
those projected in these forward-looking statements. We undertake no obligation
to update such statements to reflect subsequent events.


Contact:
     Contact:

     Patrick Conroy
     [phone]

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Source: T2 Income Fund Limited


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