Final Results - Year Ended 29 February 2000

Advent 2 VCT PLC
5 May 2000


Advent 2 VCT plc

Results for the year ended 29 February 2000

The Board of Advent 2 VCT announces the results of the company for
the year ended 29 February 2000.

Highlights

- Five investments in Qualifying Companies were added to the
  portfolio in the year ended 29 February 2000 at an initial cost
  of £4.2 million. A further £0.9 million was invested as follow-
  on investments in a number of the existing portfolio companies.
  
- Since the year end, 8 additional new investments have been
  completed at an initial cost of £4.3 million and a further £0.5
  million has been invested in existing portfolio companies.
  
- The portfolio now includes 18 investments in Qualifying
  Companies at a cost, to the date of this report, of £14.5
  million.  Outstanding tranches of investment commitment to these
  companies, scheduled for investment by 28 February 2001, total a
  further £2.4 million.
  
- A final dividend of 1.3p per ordinary share is recommended,
  payable on 14 July 2000 to shareholders on the register on 16
  June 2000. Together with the interim dividend paid on 10
  December 1999, this will make a total dividend for the year of
  2.3p per share.

                                       Year ended   Year ended
                                      29 February  28 February
                                             2000         1999
                                                   
   Revenue return per ordinary share         2.4p         3.3p
                                                              
   Total dividends per ordinary share        2.3p       3.75p*
   *equivalent for shareholders
   entitled to the gross payment
                                                   
   Net asset value per ordinary share       98.9p        95.6p
                                                 

- The amount invested in the 18 venture capital investments now
  completed, together with the £2.4 million outstanding
  commitments to those companies, represents 51.1% of the net
  funds raised by Advent 2 VCT in the offer for subscription. The
  company has until 28 February 2001 to meet the minimum
  requirement that 70% of its investments must be in Qualifying
  Holdings. The Board is confident that this target will be
  exceeded.

- The ongoing deal flow being received by the Manager is strong.



Chairman's Statement

Progress in investment

In my interim statement circulated in November I reported that a
considerable number of investment opportunities were undergoing
detailed review by the Manager and that the Board was encouraged
by the range and quality of those opportunities.

The expectations raised at that time have been borne out. I am
glad to report a substantial number of deal completions in recent
months and good progress towards the completion of an initial
portfolio of investments in a range of technology-related
businesses.

In the 12 months to 29 February 2000, Advent 2 VCT completed 5 new
investments in Qualifying Companies, as well as a number of follow-
on investments in existing portfolio companies, bringing the total
to 10 investments in Qualifying Companies at a total cost of £9.7
million.

Further investments completed since the year end have increased
the portfolio at the date of this report to 18 investments in
Qualifying Companies at a total cost of £14.5 million. In a number
of cases, Advent 2 VCT's commitment to the portfolio company is
being invested in tranches. Outstanding commitments to existing
portfolio companies, scheduled for investment by 28 February 2001,
total a further £2.4 million.

The amount invested in the 18 venture capital investments now
completed, together with the £2.4 million outstanding commitments
to those companies, represents 51.1% of the net funds raised by
Advent 2 VCT in the offer for subscription. The company has until
28 February 2001 to meet the minimum requirement that 70% of its
investments must be in Qualifying Holdings. The Board is confident
that this target will be exceeded.

Dividend

The Board recommends a final dividend of 1.3p per share for the
year ended 29 February 2000. This is in excess of the minimum
final payment indicated in my interim statement, and means that
total dividends for the year amount to 2.3p per share.

On payment of this final dividend, the cumulative total of
dividends paid since the inception of the company will amount to
6.05p (including the gross equivalent in respect of the period
ended 28 February 1999, prior to the change in the treatment of
tax credits).

Balance Sheet

The net asset value per share at 29 February 2000 was 98.9p,
compared with net assets of 95.0p attributable to shareholders
immediately following the share issue after taking into account
the 5% expenses of the issue.

The venture capital investments have been valued in accordance
with the British Venture Capital Association guidelines, under
which unquoted investments are not normally revalued above cost
for at least 12 months after the date of acquisition.

The investment in XKO Group, which was originally quoted on AIM
but has since achieved a listing on the main market of the London
Stock Exchange, has shown encouraging capital appreciation, but
against that has been set a modest decline in the market value of
the holdings of fixed-interest securities. In addition, part of
the investment management fee has been charged to capital, in line
with the policy set out in the prospectus.

I would like to remind shareholders that, having regard to the
stated investment objectives, your investment in Advent 2 VCT
should be considered a long-term investment. The prudent policy
adopted by the company for the valuation of unquoted investments
will mean that you should not expect any early appreciation in the
net asset value per share.

Purchase of own shares

Following shareholders' approval at the last Annual General
Meeting and the subsequent approval by the Court of the reduction
of the company's share premium account, all the arrangements are
in place to enable the company to purchase its own shares. As
previously explained, occasional market purchases by the company
of its own shares could provide an additional measure of liquidity
in the market for the company's shares and enhance the net asset
value per share for the company's remaining shareholders. To the
date of this report, the company has not made any such purchases.

Outlook

The recent volatility in the stock markets has reduced, for the
present, the ability of emerging growth companies in the
technology sector to raise capital through initial public
offerings very early in their lives. This creates the opportunity
for Advent 2 VCT to provide finance in the period before the
initial public offerings can be achieved, in addition to its
participation in earlier financing rounds.

However, these delays in achieving public offerings will also
affect a number of the companies in the Advent 2 VCT portfolio,
thereby delaying growth in the portfolio valuation and
distributions of realised capital gains. We believe this to be a
temporary phenomenon, which will rectify itself in due course.
Other opportunities for delivering value to shareholders, such as
trade sales, will continue to be pursued. In general, the
performance of the portfolio, though still at an early stage of
development, is satisfactory.

In relation to the dividend, I would like to remind shareholders
of the indication given in the prospectus that, after the first
accounting period, dividend income to shareholders was likely to
decline in the short term as the portfolio of Qualifying Holdings
was built up.

For the current financial period, income from fixed-interest
securities and deposits will inevitably be less than in the year
ended 29 February 2000, and at this stage in the life of the
portfolio it is still too soon to expect a substantial flow of
income from the venture capital investments. Accordingly, unless
it proves possible to achieve the realisation of one or more of
the venture capital investments for cash, shareholders should
expect that the level of the dividend payout for the year ending
28 February 2001 will show a further reduction below the 2.3p per
share for the year just ended.

In the medium to longer term, dividends paid by Advent 2 VCT will
be derived principally from the gains arising on successful
realisations of venture capital investments for cash.


Roger Brooke


Chairman



Statement of Total Return (incorporating the Revenue Account) of
the company for the year ended 29 February 2000


                        Year ended               Period from
                     29 February 2000          3 February 1998
                                            to 28 February 1999*
                  Revenue  Capital  Total  Revenue  Capital  Total
                    £'000    £'000  £'000    £'000    £'000  £'000
                                                                  
Gains on                -    1,503  1,503        -      414    414
investments                                                

Income              1,678        -  1,678    2,026        -  2,026
                                                           
Investment          (225)    (592)  (817)    (171)    (410)  (581)
management fees                                                   
Other expenses      (232)        -  (232)    (190)        -  (190)
                   ------   ------  -----    -----  -------  -----
                                                                  
Return on                                                         
ordinary                                                          
activities                                                        
before taxation     1,221      911  2,132    1,665        4  1,669
                                                                  
Tax on ordinary     (368)      188  (180)    (516)      116  (400)
activities        -------  -------  -----  -------  -------  -----
                                                                  
Return                                                            
attributable to                                                   
equity                                                            
shareholders          853    1,099  1,952    1,149      120  1,269

Ordinary                                                          
dividends on
equity shares:
- interim paid                                                    
1.0p per                                                          
ordinary share                                                    
(1999:                                                            
   interim paid                                                   
1.4p and second                                                   
interim declared                                                  
   1.6p per         (350)        -  (350)  (1,050)      -  (1,050)
share)

- final proposed                                                  
1.3p per                                                          
ordinary share                                                    
(1999:              (455)        -  (455)        -        -      -
   nil)           -------  -------  -----  -------  -------  -----

                                                                  
Transfer to                                                       
reserves, after                                                   
aggregate                                                         
dividends paid                                                    
and proposed of                                                   
£805,000                                                          
(1999:                 48    1,099  1,147       99      120    219
£1,050,000)       -------  -------  -----  -------  -------  -----
                                                                  
Return per                                                        
ordinary share       2.4p     3.2p   5.6p     3.3p     0.3p   3.6p
                  -------  -------  -----  -------  -------  -----

*The company was incorporated on 3 February 1998 and commenced
business on 16 March 1998.

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.

No operations were acquired or discontinued in the year.



Balance Sheet at 29 February 2000

                                                2000     1999          
                                               £'000    £'000
                                                             
    Fixed assets                                                       
    Investments                               29,302   32,435          
                                                             
    Current assets                                                     
    Debtors                                    1,452    1,480          
    Money market and other deposits            5,302      742          
    Cash                                         249      138          
                                             -------   ------
                                                                       
                                               7,003    2,360
                                                                       
    Creditors: amounts falling due within    (1,689)  (1,238)          
    one year                                 -------  -------
                                                                       
    Net current assets                         5,314    1,122          
                                             -------  -------
                                                                       
    Total assets less current liabilities     34,616   33,557
                                                         
                                                                       
    Provisions for liabilities and charges         -     (88)
                                             -------  -------
                                                                       
                                              34,616   33,469
                                             -------  -------
                                                                       
    Capital and reserves
    Called-up share capital                    1,750    1,750          
    Share premium account                     22,750   31,500          
    Distributable reserve                      8,750        -          
    Other reserves                                                     
    - Capital reserve - realised               (640)    (294)          
    - Capital reserve - unrealised             1,859      414          
    Revenue reserve                              147       99          
                                             -------  -------
                                                                       
    Equity shareholders' funds                34,616   33,469
                                             -------  -------
                                                                       
    Net asset value per ordinary share         98.9p    95.6p
                                             -------  -------

Net asset value per ordinary share is based on net assets at the
year end, and on 35,000,200 ordinary shares, being the number of
ordinary shares in issue on that date.

Reconciliation of movements in shareholders' funds

                                2000    1999    2000    1999
                               £'000   £'000     per     per
                                               share   share
                                                   p       p
                                                            
Opening shareholders' funds   33,469       -    95.6       -
                              ------ -------   -----  ------
                                                            
Issue of ordinary share            -  35,000       -   100.0
capital
Expenses paid in connection        - (1,750)       -   (5.0)
with share issue                                            
                              ------ -------   -----  ------
                                                            
                                   -  33,250       -    95.0
                                                    
Return attributable to                                      
equity shareholders:
- revenue                        853   1,149     2.4     3.3
- capital                      1,099     120     3.2     0.3
                              ------ -------   -----  ------
                                                            
- total                        1,952   1,269     5.6     3.6
Dividends on equity shares                                  
2.3p per share (1999: 3.0p     (805) (1,050)   (2.3)   (3.0)
per share)                                                  
                              ------ -------   -----  ------
                                                            
Net addition to                1,147  33,469     3.3    95.6
shareholders' funds                                         
                              ------ -------   -----  ------
                                                            
Closing shareholders' funds   34,616  33,469    98.9    95.6
                              ------ -------   -----  ------

The Annual Report and Accounts is expected to be posted to
shareholders by 22 May 2000.  The Annual General Meeting will be
held at the Butchers' Hall, Bartholomew Close, London EC1A 7EB at
12 noon on 13 July 2000.

The results for the year ended 29 February 2000 are abridged from
the full accounts which will be filed with the Registrar of
Companies.

Copies of this announcement will be available to the public at the
registered office of the company, 25 Buckingham Gate, London SW1E
6LD.




4 May 2000

Contacts for information:

Advent Limited                    020 7630 9811
Sir David Cooksey
Martin Williams


Ludgate Communications            020 7216 4453
Vanessa Anderson



Deutsche Bank                     020 7547 6847
Gary Pinkerton





APPENDIX


Advent 2 VCT plc

Venture capital investments

The tables below illustrate the composition of the investment
portfolio at 29 February 2000, with the venture capital
investments analysed by financing stage, and provide a sector
analysis of all the venture capital investments completed to the
date of this report.

Composition of the investment portfolio at 29 February 2000 at
valuation

Listed equities*                            7.3%
Development stage*                         25.3%
Early stage*                                1.1%
Net current assets                         15.4%
Other governmental, institutional               
and corporate loans                        37.7%
British Government securities              13.2%
                                         -------
                                          100.0%
                                         =======
                                                
* venture capital investments analysed by financing stage at
date of investment, excluding outstanding tranches of
additional commitment and follow-on commitments

Sector analysis of venture capital investments at date of this
report at cost including outstanding commitments:
                                                
Software                                   44.6%
Communications                             16.5%
Electronics                                 5.7%
Industrial products and services           12.0%
Internet                                    9.3%
Healthcare                                 11.9%
                                          ------
                                          100.0%
                                          ======

New investments

Details of the new venture capital investments completed during
the year ended 29 February 2000 are as follows:

Interactive Control Solutions Limited
Electronics

A £900,000 investment as part of a development stage
financing.Interactive Control Solutions, which is based in
Wallingford, specialises in the manufacture of touch-sensitive
displays. The financing enables the company to expand its
marketing activities and fund ongoing development of existing and
new products.

RealCall Limited
Internet

A £375,000 first tranche investment as part of a £1.0 million
commitment by Advent 2 VCT in a £4.5 million early stage
financing. RealCall, which is based in London, specialises in Web
telephony services, allowing organisations with a web presence to
initiate normal telephone calls with customers accessing their web
site. In addition the system can be used to send 'info alert'
messages straight to the user's phone. Advent 2 VCT invested
alongside Advent Private Equity Fund II and a managed fund of ACT
Ventures.

Signum Technologies Limited
Computer software

A £1.0 million investment in a development stage financing. Signum
Technologies, which is based in Witney, Oxfordshire, specialises
in watermark protection and detection for digital information. The
technology allows digital images to be used as legal evidence, for
example photographs of road traffic accidents. The watermarking
protection prevents undetected image tampering and the software
has been sold to a number of major companies. This investment will
enable the company to expand its marketing efforts and continue
development work. Advent 2 VCT invested alongside 3i, which had
originally backed the company in an earlier round.

Telemedia Systems Limited
Computer software
  
A £950,000 first tranche investment as part of a £1.9 million
commitment by Advent 2 VCT in a £5.4 million development capital
financing. Telemedia Systems, which is based in Cambridge,
specialises in the manufacture of networked video systems, its
technology enabling users to edit moving video images on a PC.
Advent 2 VCT invested alongside Advent VCT plc (which had made an
initial investment in an earlier round), Olivetti, 3i and British
Linen Equity.

Vectorcommand Limited
Computer software
  
A £1.0 million investment as part of a £2.5 million development
stage financing (taking the form of a management buy-out).
Vectorcommand, based in Havant, Hampshire, designs and
manufactures highly sophisticated, PC based training systems that
simulate emergency situations. The systems are already used by 18
regional fire departments. Advent 2 VCT invested alongside
Barclays Ventures and a group of private investors.


Additional investments completed since 29 February 2000 are as
follows:

                                           Initial     Total
                  Financing                investment  commitment
                  stage        Sector      £'000       £'000
                  -----        ------      -----       -----
                                                       
Nomad Software    Development  Computer    500         500
Ltd                            software

Dencare           Development  Healthcare  1,000       1,000
Management Group
Ltd

EQOS Systems Ltd  Early stage  Internet    315         630

Nexan plc         Early stage  Healthcare  220         1,100

The Casella Group Development  Industrial  637         840
Ltd                            products
                               and
                               services
                               
Radiant Networks  Early stage  Communicat  224         640
Ltd                            ions

Post Impressions  Development  Computer    500         500
(Systems) Ltd                  software

Footfall Ltd      Development  Computer    950         950
                               software