Interim Management Statement

Octopus Protected VCT plc ("the Fund")

5 December 2008

Interim Management Statement
For the period from 1 August 2008 to 31 October 2008

In accordance with Rule 4.3 of the UK Listing Authority's  Disclosure
and Transparency rules, Octopus Protected VCT plc presents an Interim
Management Statement  for the  period  1 August  2008 to  31  October
2008.  The  statement also  includes relevant  financial  information
between the end of the period and the date of this statement.

Financial highlights


                                Three months
                                          to                  Year to
                                  31 October Six months to 31 January
                                        2008  31 July 2008       2008

Total net assets (£'000s)             25,145        25,754     26,114
Net asset value per share              92.0p         94.2p      95.5p
Net revenue return after tax
(£'000s)                                 542           393        498
Share price                            85.0p         70.0p      95.0p
Cumulative dividend - paid and
proposed since launch                   3.0p          3.0p       1.5p


Investment performance
The unaudited net asset  value ("NAV") per share  at 31 October  2008
was 92.0p compared to  a NAV at  31 July 2008,  the half-year end  of
94.2p.  However, a 1.5p  per share dividend was  paid in the  period.
Total return  for the  period  was therefore  -0.7p or  -0.74%.   The
investment manager has taken an active approach to managing the  cash
resources raised through  the Offer  prior to its  investment in  VCT
Qualifying Companies. The funds raised have been invested in a  range
of money market securities.

The investments made last year into British Country Inns plc, Funeral
Services Partnership Limited,  Hydrobolt, Bruce  Dunlop &  Associates
Limited and Tristar Worldwide  Limited are all held  at cost and  are
performing in-line with expectations at this stage.

Investment activity
Since the half-year end,  the Fund has made  one new investment  into
Vulcan Services II Limited.  This is an acquisition vehicle formed to
seek strategic acquisitions in the fast growing oil and gas  services
sector.  This is a sector in which Octopus has identified a number of
highly profitable,  fast  growing,  niche  manufacturing  businesses,
which benefits from above average oil prices.  The management partner
in  this  venture  has  a  track  record  of  identifying  successful
investments in the sector and currently sits on the board of  another
Octopus investment  called  Hydrobolt Limited.   Octopus  expects  to
complete the first acquisition in the next six to twelve months.

The total value of  the investment portfolio at  5 December 2008  was
£25.9 million  with  over £4.7  million  invested in  VCT  Qualifying
Companies.  Currently, £21.2 million is  invested in a range of  cash
and money  market  securities  awaiting investment  in  suitable  VCT
Qualifying Companies.


Largest qualifying holdings

Company                    Investment    Carrying Percentage of total
                                class value £'000       investments*
Funeral Services
Partnership Limited          Unquoted       1,000                3.9%
Bruce Dunlop & Associates
Limited                      Unquoted       1,000                3.9%
Tristar Worldwide Limited    Unquoted       1,000                3.9%
Vulcan Services II Limited   Unquoted       1,000                3.9%
Hydrobolt Limited            Unquoted         606                2.4%
British Country Inns 3 plc   Unquoted         100                0.4%

* including cash and money market securities

Investment Pipeline
During the period we have seen increased interest for our funds as an
alternative to traditional bank debt. This is due to a loss of  trust
in the banks, some banks going into administration, more  restrictive
terms, increased charges from  banks and companies appreciating  that
the five  year interest  only  funds that  we  can provide  are  more
suitable for  the  current  economic  environment  than  the  typical
repayment loans  offered by  banks. We  are cautiously  investigating
such deals and are giving preference to deals where there is  already
a lead  equity  provider  invested  or preparing  to  invest  in  the
company.   Whilst  these  will  all  be  profitable  and   successful
businesses at the time of investment we are focusing our attention on
ensuring  that  the  business  will  cope  with  significant   future
underperformance without putting our investment  at risk. We hope  to
complete a few of these deals in the next six months.

Dividends and investment strategy
As stated in the half-yearly report for the six months ending 31 July
2008, the Board declared an interim dividend of 1.5 pence per  share.
This was paid to shareholders on  31 October 2008 to shareholders  on
register at the close of business on 3 October 2008.

Share buybacks
During the period under  review, the Fund  bought back 14,225  shares
for cancellation at a price  of 83.5p per share (Total  consideration
£11,879).  No shares were issued in the period.

Material events and transactions
The Fund's Board is not aware of any significant event or transaction
which has  occurred between  the  1 November  2008  and the  date  of
publication of this  statement, other than  the investment in  Vulcan
Services II  Limited as  noted  above, which  would have  a  material
impact on  the financial  position  on the  Fund,  and has  not  been
detailed above.


For further information please contact:
Stuart Nicol - Fund Manager
Octopus Investments Limited - 020 7710 2800


ENDS

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