Interim Management Statement

Baronsmead VCT 2 plc Interim management statement For the three month period from 1 April 2009 to 30 June 2009 Financial Headlines * 3.2% increase in underlying Net Asset Value (NAV) per share due primarily to growth in value of AIM investments * 2.5p interim dividend paid on 26 June 2009 resulting in NAV per share at period end of 87.77p per share Investment Objective and Dividend Policy Baronsmead VCT 2 plc is a tax efficient listed company which aims to achieve long-term capital growth and generate tax-free dividends and capital distributions for private investors. The Board aims to sustain a minimum annual dividend level at an average of 5.5p per Ordinary Share, mindful of the need to maintain net asset value. The ability to meet these twin objectives depends significantly on the level and timing of profitable realisations and cannot be guaranteed. There will be variations in the amounts of dividends paid year on year. In the current economic environment realisations may be difficult to achieve but there are expected to be good opportunities to invest advantageously. Dividends are normally declared on the publication of the Interim and Annual Results unless circumstances dictate otherwise. Dividends are paid from net revenues and from distributable reserves earned on the profitable realisation of investments, with the amount declared being dependent on the circumstances of the Company at the time. Performance Summary Capital return As at As at Movement 30 31 % June March 2008 2009 Ordinary shares Total net assets £60.3m £58.6m Net asset value per 87.77p 85.07p* 3.2 share Share price 79.50p 77.50p 2.6 Premium/(Discount) to (9.4%) (11.5%) NAV * This is stated after adjusting for the payment of an interim dividend of 2.5p per share (paid on 26 June 2009) for comparative purposes Total return 3 months to 1 year to 5 years to 10 years to 30 June 2009 30 June 2009 30 June 2008 30 June 2009 Ordinary shares Net asset value (1) 3.1% (5.3%) 27.9% 70.8% Share price (2) 7.2% (7.0%) 28.0% 59.9% FTSE All-share (3) 10.9% (20.5%) 16.3% 1.4% 1)NAV Total return = NAV + reinvested dividends; Source: ISIS EP LLP 2)Share price Total return = Mid to mid share price + reinvested dividends; Source: AIC 3) FTSE All-share = FTSE All-share Index + reinvested dividends; Source: AIC Investment Performance During the period under review there was a general recovery in financial markets although volatility in the value of quoted shares remains. As a result, over the quarter to 30 June 2009, the FTSE All-Share index and the FTSE AIM index rose 9.5% and 28.5% respectively. The underlying NAV of the Company rose by 2.7p per share (3.2%) over the quarter after adjusting for the payment of the 2.5p interim dividend. The increase in the value of the NAV is mainly attributable to the 19.2% increase in the value of the Company's AIM quoted investments. There was a small upward revaluation across the unquoted portfolio. Investment Activity In 2009, the number of unquoted and AIM investment opportunities in the UK has dropped significantly as high quality investee companies have had to adjust their valuation expectations downwards. In addition, investors have found it more difficult to look forward at future trading prospects and their associated risks. The Manager has increased its marketing to identify investment opportunities over this period but has not been prepared to invest without the greater certainty that will arise from a more stable UK economic climate. There are early signs that confidence is slowly returning and the Manager has noted this across many of the existing portfolio companies. No further qualifying investments were completed in the period but there were some limited realisations amounting to £0.4m gross proceeds. However, a non-qualifying investment of £106,000 was made in Ffastfill which is an AIM traded company specialising in software for financial services. Investments Company Date Cost (£'000) VCT status Follow on Investments Ffastfill* June 09 106 Non Qualifying Total Q2, 2009 106 * AIM traded investments Top ten investment holdings Position as at Position as at Company Percentage of net assets as at 30 30 June 2009 31 Mar 2009 June 2009 1 2 Reed & Mackay 4.8% 2 1 Scriptswitch 4.5% 3 3 Carnell Contractors 4.3% 4 4 Nexus 4.1% 5 5 Independent Living Services 3.0% 6 6 Cablecom 2.9% 7 7 Quantix 2.8% 8 9 Fishers Outdoor Leisure 2.4% 9 8 Kafevend 2.4% 10 14 IDOX plc 2.3% Total 33.5% Sector breakdown (excluding cash and interest bearing securities) Percentage of total Percentage of total investments at investments at 30 June 2009 31 March 2009 Business Services 33 34 Consumer Markets 14 14 IT & Media 28 25 Healthcare & Education 19 21 Financial Services 6 6 Total 100 100 Daily and key information Further information regarding the Company, including latest financial statements or quarterly factsheets, can be found at the Company's website www.baronsmeadvct2.co.uk July Net Asset Value The NAV per share at 31 July 2009 was 87.32p. Other than as disclosed in this statement the Board is not aware of any significant events or transactions which have occurred between 30 June 2009 and the date of publication of this statement which would have a material impact on the financial position of the Company. For further information please contact: Michael Probin, VCT Investor Relations, ISIS EP LLP on 020 7506 5796 or michael.probin@isisep.com Paul Forster Company Secretary on 020 7506 5652 or paul.forster@isisep.com

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