Preliminary Results

Oxford Technology 2 VCT PLC
06 May 2005


 Preliminary Announcement for Oxford Technology 2 Venture Capital Trust plc for
                        the year ended 28 February 2005

                              Chairman's Statement

Investment Portfolio

Oxford Technology 2 VCT (OT2VCT) investee companies have generally made
encouraging progress with some successfully raising capital at higher share
prices and one company floating on AIM (although this happened just after the
February 2005 year end and so has not been reflected in these accounts).
However, the successes of these investee companies have been counter-balanced in
the Net Asset Value by others which have had difficulty in raising capital
during the year. The net asset value as at 28 February 2005 was 77p per share
compared to 78p per share at 29 February 2004.

Insense, which develops novel wound dressings, has raised capital at an
increased price of £1.33 per share (which compares to the £1 per share at which
the investment was originally held). The value of OT2VCT's holding in Insense
has therefore increased from £266,110 to £353,926. Astron Clinica, which
develops software and hardware systems for the detection of skin cancer and
other skin disorders raised £3.5m at a shareprice which values OT2VCT's holding
at approximately £325,000. However, this happened just after the year end, so
this increased value is not reflected in the balance sheet of these accounts.

However, other companies have had funding difficulties. Armstrong Healthcare in
particular has had problems in raising capital and the value of this holding has
decreased. This has been caused by the fact that Armstrong has experienced
delays with the development programme of Pathfinder, its instrument for image
guided brain surgery, and because it missed its sales targets for EndoAssist,
its camera holding robot for endoscopic surgery. This meant that Armstrong
needed to raise additional capital, and that it was necessary to raise this by a
rights issue at £1.50 per share which compared to £4 per share at which capital
had been raised in 2004.  However, at the time of writing, Armstrong has
received its first commercial order for Pathfinder and the sales prospects for
EndoAssist are looking better, especially in the US, than at any previous time.
So the hope and expectation is that the value of OT2VCT holding in Armstrong
will again increase.

There have been encouraging developments since the year end at 28 February 2005,
which will increase the Net Asset Value, but which are not reflected in these
accounts. In particular, on 4 April 2005, Hardide Ltd floated on AIM, and OT2VCT
sold its shares at the time of the float for £712,500.  The original cost of
this investment was £250,000, but for the purposes of these accounts, OT2VCTs
holding was valued at £500,000 (being the number of shares held multiplied by
the most recent share price at which investors had subscribed).

Results for the year

Interest on bank deposits and investee loans together with dividend income
produced gross revenue of £47,000 (2004: £39,000) in the year. Net revenue after
taxation and management expenses was a loss of £119,000 (2004: loss of £159,000)
and revenue return for the period was a loss of1.98p (2004: loss of 2.65p) per
share. Capital return was a profit of 1.20p (2004: loss of 3.55p) per share.

AGM

Shareholders should note that the AGM for Oxford Technology 2 VCT will be held
on Friday 10th June 2005, at the Magdalen Centre, Oxford Science Park, starting
at 12.00 pm 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.

Fuller information on each of the investee companies is given in the April 2005
newsletter.

John Jackson

Chairman

6 May 2005



  Statement of total return (incorporating the revenue account)*  for the year
                             ended 28 February 2005
                                                                   2005                             2004
                                                                Audited                          Audited
                                     Revenue £000     Capital     Total     Revenue     Capital    Total
                                                         £000      £000        £000        £000     £000
Loss on investments                             -          72        72           -       (213)    (213)
Income                                         47           -        47          39           -       39
Investment management  fee                  (108)           -     (108)       (133)           -    (133)
Other expenses                               (58)           -      (58)        (65)           -     (65)
                                            _____       _____     _____       _____       _____    _____
Net loss on ordinary activities             (119)          72      (47)       (159)       (213)    (372)
before taxation
Tax on ordinary activities                      -           -         -           -           -        -
                                            _____       _____     _____       _____       _____    _____
Loss attributable to equity                 (119)          72      (47)       (159)       (213)    (372)
shareholders and transfers from
reserves
                                           ======      ======    ======      ======      ======   ======
Loss per ordinary share                   (1.98p)       1.20p   (0.78)p     (2.65)p     (3.55)p  (6.20)p
                                           ======      ======    ======      ======      ======   ======

* The revenue 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. There were no recognised gains or losses for the year
other than those shown above.



                       Balance sheet at 28 February 2005

                                      28 February 2005 29 February 2004 Audited
                                               Audited
                                      £000        £000         £000        £000
Fixed assets
Investments                                      4,434                    4,402
Current assets
Debtors                                 67                       38
Cash at bank                           142                      251
                                     _____                    _____
                                       209                      289
Creditors: amounts falling due         (4)                      (5)
within one year
                                     _____                    _____
Net current assets                                 205                      284
                                                 _____                    _____
Net assets                                       4,639                    4,686
                                                 =====                    =====
Capital and reserves
Called up share capital                            600                      600
Share premium account                            5,221                    5,221
Other reserves:
Capital reserve - realised                       (593)                    (583)
Capital reserve - unrealised                     (149)                    (231)
Revenue reserve                                  (440)                    (321)
                                                 _____                    _____
Shareholders' funds                              4,639                    4,686
                                                 =====                    =====
Net asset value per share                          77p                      78p
                                                 =====                    =====



            Cash flow statement for the year ended 28 February 2005

                                           2005    2004
                                        Audited Audited
                                           £000    £000
Net cash outflow from operating           (149)   (170)
activities
Capital expenditure and financial
investment
                Purchase of investments       -   (156)
   Disposal / redemption of investments      40       3
                                         ______  ______
Net cash outflow from capital                40   (153)
expenditure and financial
investment
                                         ______  ______
Decrease in cash                          (109)   (323)
                                         ======  ======



                                     Notes:

1. Basis of preparation

The preliminary announcement has been prepared in accordance with applicable
accounting standards up to and including FRS 19 and with the Statement of
Recommended Practice 'Financial statements of investment trust companies' issued
in January 2003. The principal accounting policies have remained unchanged from
those set out in the company's 2003 financial statements.

2. Return per Ordinary Share

The calculation of revenue return per share is based on the net deficit for the
financial period of £119,000 (2004: £159,000) divided by the weighted average
number of ordinary shares of 6,000,000 (2004: 6,000,000) in issue during the
period.

The calculation of capital return per share is based on the net capital loss for
the financial period of £72,000 (2004: loss of £213,000) divided by the weighted
average number of ordinary shares of 6,000,000 (2004: 6,000,000) in issue during
the period.

3. General

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The balance sheet at 28 February 2005 and the statement of total return,
cash flow statement and associated notes for the year then ended have been
extracted from the company's 2005 statutory financial statements on which the
auditors' opinion is unqualified and does not include any statement under
section 237 of the Companies Act 1985.


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