Final Results - Year Ended 31 December 1999

Northern 2 VCT PLC
7 March 2000



PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE PERIOD FROM 8 JANUARY 1999 TO 31 JANUARY 2000


Highlights are as follows:

                                                 Period ended
                                                   31 January
                                                         2000
                                                             
Net revenue before tax                               £638,000
                                                             
Revenue return per share                                 3.0p
                                                             
Dividend per share                                       2.2p
                                                             
Net assets                                        £20,523,000
                                                             
Net asset value per share                               93.2p
                                                             
Share price (mid-market)                                 100p
                                                             


The statement to shareholders by the Chairman, Dr Matt Ridley, includes the
following comments:


I am pleased to present to shareholders Northern 2 VCT's first annual report,
covering the period from the date of incorporation to 31 January 2000.  During
the period the company raised over £22 million from investors - the highest
figure achieved by any new Venture Capital Trust launched in the 1998 to 99
tax year - and made an encouraging start to the process of building its
portfolio of qualifying venture capital investments.

Net asset value

The net asset value (NAV) at 31 January 2000 was 93.2p per share compared with
an effective opening value, after deducting issue expenses, of 95p.  As our
venture capital investments are all still valued at their original cost, the
reported NAV reflects the impact of rising interest rates on the market value
of our fixed interest portfolio (whose redemption yield is substantially pre-
determined) and the company's policy of charging 75% of management fees
against capital reserves.  The NAV is stated after deducting the proposed
final dividend.

Investments

During the year our managers completed 10 unlisted venture capital
investments, further details of which are given in the annual report.  Your
directors are encouraged at this early stage by the way the portfolio is
shaping up and by the standard of the continuing flow of potential new
investments.  Another investment has been completed since the end of January,
taking the cumulative amount invested to £4.6 million.  I am also pleased to
report the successful flotation of Scipher shortly after our year end, as a
result of which our original investment of £260,000 more than doubled in value
by the end of February.

Revenue and dividends

Net revenue before tax for the period was £638,000 and the revenue return per
share (earnings per share) was 3.0p.  The latter figure is based on a weighted
average number of shares in issue during the year, and the revenue actually
available for distribution amounts to just over 2.2p for each share in issue
at the year end.  As no interim dividend was paid, the directors are pleased
to recommend a final dividend of 2.2p per share, which will be paid on 9 June
2000 to shareholders on the register on 17 March 2000.  Shareholders should
bear in mind that in the short term the annual dividend is likely to reduce as
funds are moved from the fixed interest portfolio into venture capital
investments, which may yield less income.

VCT qualifying status

Your board has retained PricewaterhouseCoopers to monitor and report on the
company's progress towards meeting the qualifying investment requirements laid
down in the VCT legislation.  We are confident that all the relevant
conditions will be met in advance of the first deadline in January 2002.

Share buy-backs

The company's mid-market share price has remained resolutely at its opening
level of 100p and so far as the board is aware there has been no trading in
the shares.  In order to maintain the company's ability to act as a market
purchaser where this is in the interest of shareholders generally, at the
forthcoming annual general meeting we will be asking shareholders to renew the
board's powers to purchase the company's shares in the market.  We also intend
during the next year to seek Court consent to a reduction in the company's
share premium account, so enabling us to credit an equivalent amount to a new
distributable capital reserve which can be utilised to purchase shares in the
market for cancellation.

Proposed share placing

The directors intend in the near future to use their authority to place a
small number of new shares, not exceeding 10% of the existing share capital. 
This is an effective and relatively inexpensive way of increasing the
company's capital base.  It is envisaged that new shares will be issued at a
small premium to the 1999 issue price of 100p and that they will not rank for
the final dividend for the period ended 31 January 2000.

Corporate governance

The company complies with current published guidance to best practice in
corporate governance.  A statement covering the key matters relevant to the
company is set out in the annual report.

Future prospects

We operate in strange times.  A bubble of enthusiasm for internet stocks has
starved some more traditional sectors of investment capital.  Yet it has also
created an unprecedented enthusiasm for entrepreneurial activity in the UK,
which we are well placed to support.  Our managers continue to receive a
strong flow of enquiries from entrepreneurs all over the country and, in
conjunction with our sister funds, we can do deals of up to £3 million.  We
are therefore well placed to achieve for our shareholders not only a good
return on their investment, augmented by VCT tax reliefs, but also the
satisfaction of knowing that their investment has helped to create wealth and
opportunity in the economy.


MATT RIDLEY
Chairman



The financial statements show the results set out below:

STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
                                           Period ended
                                        31 January 2000
                               Revenue  Capital Total
                               £000     £000    £000
Gains(losses) on investments   -        (259)   (259)
Income                         869      -       869
Investment management fee      (68)     (203)   (271)
Other expenses                 (163)    -       (163)
                               -------  ------- ------
Return on ordinary activities  638      (462)   176
before tax
Tax on ordinary activities     (152)    48      (104)
                               -------  ------- ------
Return on ordinary activities  486      (414)   72
after tax
Dividends                      (485)    -       (485)
                               -------  ------- ------
Transferred to(from) reserves  1        (414)   (413)
                               -------  ------- ------
Return per share                  3.0p   (2.5)p    0.5p
Dividend per share                2.2p                 

BALANCE SHEET
                                         31 January 2000
                                                    £000
Fixed asset investments               
   Venture capital investments        3,849
   Listed fixed-interest investments  14,993
                                      -----------------
                                      18,842
Net current assets                    1,681
                                      -----------------
Net assets                            20,523
                                      -----------------
Share capital                         1,101
Share premium                         19,835
Capital reserve - realised            (166)
               -    unrealised        (248)
Revenue reserve                       1
                                      -----------------
Total shareholders' funds             20,523
                                      -----------------
Net asset value per share                          93.2p

The above summary of results for the period ended 31 January 2000 does not
constitute statutory financial statements within the meaning of Section 240 of
the Companies Act 1985 and has not been delivered to the Registrar of
Companies.  Statutory financial statements will be filed with the Registrar of
Companies in due course; the auditors' report on those financial statements
under Section 235 of the Companies Act 1985 is unqualified and does not
contain a statement under Section 237(2) or (3) of the Companies Act 1985.
The proposed final dividend for the period ended 31 January 2000 will, if
approved by shareholders, be paid on 9 June 2000 to shareholders on the
register at the close of business on 17 March 2000.

A copy of the full annual report and financial statements for the period ended
31 January 2000 is expected to be posted to shareholders on 21 March 2000 and
will be available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.

For further information contact:
Christopher Mellor              0191 244 6000
(Northern 2 VCT PLC)
Neil Baldwin                    0113 241 0130
(Bell Lawrie Wise Speke
Corporate Finance)