Interims

Octopus Protected VCT plc

Six months ended 31 July 2007

Financial Highlights


                           Six months to 31 July Period to 31 January
                                            2007                 2007
Net assets                           £25,983,000           £6,417,000
Net revenue/(loss) before
tax                                     £175,000            £(14,000)
Revenue/(loss) per share                    0.8p               (1.0)p
Total return/(loss) per
share                                       0.7p               (4.1)p
Net asset value per share                  94.9p                93.7p


Octopus Protected VCT plc ("Company" or "Fund") is a venture  capital
trust ("VCT")  which aims  to  provide shareholders  with  attractive
tax-free dividends and long-term  capital growth, through  investment
in a diversified  portfolio of  UK smaller companies,  mostly in  the
form of mezzanine debt.

The Investment Manager is  Octopus Investments Limited ("Octopus").
The Company was launched in July  2006 and raised over £27.1  million
(£25.9 million net of  expenses) through an  offer ("the Offer")  for
subscription by the time it closed on 5 April 2007.

Chairman's Statement

I am pleased to be presenting  to you the interim results of  Octopus
Protected VCT plc for the six-month period to 31 July 2007.

Background
The Fund opened in July 2006 and  had raised £27 million by the  time
it closed on 5 April 2007, making it the second largest VCT  launched
in the 2006/2007 tax year.

Net Asset Value ('NAV')
The NAV per share at 31 July 2007 was 94.9p, which is an increase  of
0.4p from the  initial NAV.  Since the close  of the  Offer, the  net
proceeds have been actively managed by our cash managers and are  now
generating income for the Fund, leading to a slight uplift in NAV.

Investment Portfolio
During the  first half  of  the period  under  review, the  Fund  was
engaged in seeking investors rather than looking to make investments.
As such,  only  one qualifying  investment,  of £100,000  in  British
Country Inns 3 plc, was held at the period end. However, Octopus  has
taken an  active approach  to managing  the cash  raised through  the
Offer prior  to its  investment in  qualifying companies.  The  funds
raised have been invested by  Goldman Sachs International in a  range
of money market securities.

Investment Process
The Fund targets investments into  companies that operate in  sectors
where there  is  a  high degree  of  predictability.  Ideally,  these
companies will  have  contractual  revenues  from  financially  sound
customers and will provide the  opportunity for an exit within  three
to five years.

Before investing  in a  company, the  fund managers  at Octopus  will
conduct their own fundamental analysis. This will include a  thorough
review and analysis  of the  company's business  plan, meetings  with
management  teams,  and  a  detailed  evaluation  of  the   company's
financial projections.  This  analysis will  focus  on the  level  of
revenue visibility within the business  and the extent to which  this
revenue is contractually agreed.

Share Price and Buy-Back Facility
The Fund has a share  buy-back facility, proposing where possible  to
buy-back shares at no more than a 10% discount to the prevailing NAV.
This should assist the marketability  of the shares and help  prevent
the shares from  trading at a  wide discount to  NAV. The Fund's  mid
market share price currently stands at 95p.

Shareholders should note that if  they sell their shares within  five
years of the  original purchase  they forfeit any  income tax  relief
obtained. If you need to sell your shares, please contact Octopus  on
020 7710 2800.

VCT Qualifying Status
The Fund must be 70% invested  in qualifying companies by 31  January
2010, and maintain this  level on a day  by day basis thereafter,  in
order to comply with VCT regulations. The Directors will monitor  the
Fund's progress  towards  meeting  and  maintaining  HM  Revenue  and
Customs'   conditions   for   VCT   approval   and   have    retained
PricewaterhouseCoopers  LLP,  one  of  the  UK's  leading  firms   of
accountants, to advise in this area.

Outlook
Since the fundraising period came to an end, the investment team have
met with the management teams of a number of companies which may lead
to suitable  investment opportunities.   We  will update  you in  due
course with regard to investments that have been completed.

We are confident that we will be able to build a portfolio which will
be well positioned to deliver  attractive returns to shareholders  in
the medium-term.
Investment Manager's Review

We are delighted that  the Fund raised over  £27 million by the  time
the Offer closed on 5 April 2007. As is usual for a VCT in its  early
stages, the Fund has yet to make many investments.  However, early in
April this year, the Fund invested £100,000 in British Country Inns 3
plc.  In  line with British  Venture Capital Association  guidelines,
the investment is currently held at cost for valuation purposes.

Review of Investments
Although only one small qualifying investment was held at the  period
end, the  Fund has  taken an  active approach  to managing  the  cash
raised through  the  Offer  prior to  its  investment  in  qualifying
companies.   The funds  raised have  been invested  by Goldman  Sachs
International in a range of money market securities.

Personal Service
At Octopus, we pride  ourselves not only on  our team's track  record
but also on our  personalised customer service.   We believe in  open
communication and  our  regular  updates are  designed  to  keep  you
involved and informed.

Octopus, founded in  2000, is one  of the UK's  fastest growing  fund
management  companies.   The  company   is  committed   to   bringing
innovative, high-return  products to  the broadest  possible  market.
Octopus currently manages almost £400 million on behalf of more  than
11,000 investors.  Octopus is one of the largest VCT managers in  the
UK and was recently voted 'Best VCT Provider of the Year 2007' in the
Professional Adviser Awards (voted for by financial advisers).

If you have any questions about this  review, or if it would help  to
speak to one of the fund managers, please do not hesitate to  contact
us on 020 7710 2800.


Income Statement
                       Six months to 31 July     Period to 31 January
                                        2007                     2007
                       Revenue Capital Total   Revenue Capital  Total
                         £'000   £'000 £'000     £'000   £'000  £'000
Realised gain on
investments                  -      49    49         -       -      -

Unrealised gain on
investments                  -      90    90         -       -      -

Income                     375       -   375        63       -     63

Investment
management fees           (52)   (156) (208)      (13)    (40)   (53)
Other expenses           (148)       - (148)      (64)       -   (64)
Profit/(loss) on
ordinary activities
before taxation            175    (17)   158      (14)    (40)   (54)
Taxation on
profit/(loss) on
ordinary activities          -       -     -         -       -      -
Profit/(loss) on
ordinary activities
after taxation             175    (17)   158      (14)    (40)   (54)
Return/(loss) per
share                     0.8p  (0.1)p  0.7p    (1.0)p  (3.1)p (4.1)p


- the total column of this statement is the profit and loss account
of the Company

- all revenue and capital items in the above statement derive from
continuing operations

- the accompanying notes are an integral part of the financial
statements

- the Company has only one class of business and derives its income
from investments made in shares and securities and from bank and
money market funds


+-------------------------------------------------------------------+
| Reconciliation of Movements in Shareholders' Funds                |
|-------------------------------------------------------------------|
|        |       |       |       |   | Six months to | Period to 31 |
|        |       |       |       |   |  31 July 2007 | January 2007 |
|------------------------------------+---------------+--------------|
|                                    |         £'000 |        £'000 |
|------------------------------------+---------------+--------------|
| Shareholders' funds at start of    |               |              |
| period                             |         6,417 |            - |
|------------------------------------+---------------+--------------|
|        |       |       |       |   |               |              |
|--------------------------------+---+---------------+--------------|
| Return/(loss) on ordinary      |   |               |              |
| activities after tax           |   |           158 |         (54) |
|--------------------------------+---+---------------+--------------|
| Issue of redeemable non-voting |   |               |              |
| preference shares              |   |             - |           50 |
|--------------------------------+---+---------------+--------------|
| Redemption of redeemable       |   |               |              |
| non-voting preference shares   |   |             - |         (50) |
|--------------------------------+---+---------------+--------------|
| Net proceeds of share issue    |   |        19,408 |        6,471 |
|--------------------------------+---+---------------+--------------|
| Shareholders' funds at end of  |   |               |              |
| period                         |   |        25,983 |        6,417 |
+-------------------------------------------------------------------+



Balance Sheet
                                       As at 31 July As at 31 January
                                                2007             2007
                                               £'000            £'000
Fixed asset investments                          100                -
Current assets:
Investments - money market
securities                                    25,411            6,337
Debtors                                          523                3
Cash at bank                                       7              703
                                              26,041            7,043
Creditors: amounts falling due
within one year                                 (58)            (626)
Net current assets                            25,983            6,417
Total assets less current
liabilities                                   25,983            6,417
Capital and reserves:
Share capital                                  2,739              685
Share premium                                 23,140            5,786
Capital reserve - realised                     (147)             (40)
                         -
unrealised                                        90                -
Revenue reserve                                  161             (14)
Shareholders' funds                           25,983            6,417
Net asset value per share                      94.9p            93.7p
Number of shares in issue                 27,386,926        6,849,344



Cash Flow Statement
                                        Six months to 31 Period to 31
                                               July 2007 January 2007
                                                   £'000        £'000
Net cash outflow from operating
activities                                         (864)          609

Financial investment:
Purchase of investments                            (100)            -

Management of liquid resources:
Increase in money market securities             (19,074)      (6,337)

Financing:
Issue of own shares                               20,375        6,775
Share issue expenses                               (967)        (254)
Purchase of own shares                                 -         (50)
Capital reserve  realised -
capitalised management fees                        (156)         (40)
Unrealised gains on investments                       90            -
Increase/(decrease) in cash resources              (696)          703




Reconciliation of net cash flow to movement in cash funds
                                Six months to 31 Period to 31 January
                                       July 2007                 2007
                                           £'000                £'000
Increase in liquid resources              18,378                7,040
Opening net liquid resources               7,040                    -
Net cash at 31 July/31
January                                   25,418                7,040



Reconciliation of operating profit to cash flow from operating
activities
                                        Six months to 31 Period to 31
                                               July 2007 January 2007
                                                   £'000        £'000
Profit/(loss) on ordinary activities                 158
before tax                                                       (54)
Unrealised gains on investments                     (90)            -
Capitalisation of management fees                    156           40
Increase in debtors                                (520)          (3)
Increase/(decrease) in creditors                   (568)          626
Net cash (outflow)/inflow from
operating activities                               (864)          609


Notes to the Interim Financial Statements

1.             Basis of preparation

The unaudited interim results which cover  the six months to 31  July
2007 have  been prepared  in  accordance with  applicable  accounting
standards and adopt the accounting policies set out in the  statutory
accounts of the Company for the year ended 31 January 2007.

2.             Publication of non-statutory accounts

The unaudited interim results for the  six months ended 31 July  2007
do not constitute  statutory accounts within  the meaning of  Section
240 of the  Companies Act  1985 and have  not been  delivered to  the
Registrar of Companies.

3.             Earnings per share

The revenue/(loss) per share is based on revenue/(loss) from ordinary
activities of £174,732  and on  21,331,195 shares  (31 January  2007:
£(13,588) and 1,315,350 shares), being the weighted average number of
shares in issue during the period.

The total earnings/(loss) per share is based on total earnings/(loss)
from ordinary activities  of £157,896  and on  21,331,195 shares  (31
January 2007:  £(53,624) and  1,315,350 shares),  being the  weighted
average number of shares in issue during the period.

There are no potentially dilutive  capital instruments in issue  and,
therefore, no diluted return per share figures are relevant.

4.             Net asset value per share

                The calculation of net asset value per share is based
on the net assets at 31 July 2007 and on 27,386,926 shares being  the
number of  shares  in  issue  at the  same  date  (31  January  2007:
6,849,344).

5.              During the six months ended 31 July 2007 the  Company
issued 20,537,582 ordinary shares at a price of 100p relating to  the
initial fundraising period.   The Company did not buy back any shares
during the same period.

6.       Copies of this statement are being sent to all shareholders.
Copies are also available from  the registered office of the  Company
at 8 Angel Court, London, EC2R 7HP.


ENDS

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