Interim Management Statement

Octopus Titan VCT 2 PLC
Interim Management Statement

9 September 2009

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure
and Transparency rules, Octopus Titan VCT 2 plc ("Titan 2" or "Fund")
presents an Interim Management Statement for the period 1 May 2009 to
31 July 2009.  The statement also includes relevant financial
information between the end of the period and the date of this
statement.

Financial Summary

                            As at 31 July As at 30 April     As at 31
                                     2009           2009 October 2008

Net assets (000s)                 £14,883        £14,292      £14,036
Net asset value per share
("NAV")                             95.3p          91.5p        89.9p
Cumulative dividends paid
since launch                         1.0p           0.5p            -
Total return (NAV plus
dividends paid)                     96.3p          92.0p        89.9p


Investment performance
Since the half-yearly report at 30 April 2009, the total return
(being NAV plus dividends paid) has risen 4.3p, from 92.0p to 96.3p.
This is due to the continued uplift in valuation of the Octopus OEIC
non-qualifying investments. Since the period end, the CF Octopus
Partner Fund (Absolute Return) has continued its excellent overall
performance and is now the number one fund in its sector. It has also
been good to see a recovery in the CF Octopus Partner Fund (Smaller
Companies) which, even though it is the top fund in its sector, had
fallen in value during the severe correction in the stock market but
is now seeing its value increase with the recent market recovery.

Titan 2 is actively investing, looking to take advantage of reduced
price expectations from entrepreneurs seeking funding in a tough
environment. The Manager is seeing an extremely strong deal flow and
is in active negotiations with a number of businesses. Since the
period end of 30 April 2009 four new investments have been made and
one follow on investment completed.

In May, the Company made an investment of £200,000 into Phase Vision.
Phase Vision is a manufacturer of optical inspection solutions for
high-speed, three dimensional shape measurement with micro-scale
accuracy. The company has developed (and patented) a unique optical
approach to the measurement of very large industrial items with
free-form or curved surfaces, such as ship propellers and aircraft
wings to tighten manufacturing tolerances, increase throughput and
reduce waste.

In June, the Company invested £275,000 into Graze. Graze boast an
impressive and experienced management team. Graze's CEO is Graham
Bosher, who also co-founded LOVEFiLM, the highly successful company
which has become Europe's largest DVD film rental service. Graze is
focused on making healthy foods more convenient whilst remaining
affordable.

In July two further investments were made. The first was a £300,000
investment into Surrey Nanosystems, a leading manufacturer of Carbon
nanotubes. The second; a £100,000 investment into The SkillsMarket;
an IT recruitment company.

In August one follow on investment was completed; £75,000 into The
Key Revolution.

A full update of all of these investments will be provided in the
annual report for 31 October 2009.

Qualifying Investment Portfolio - as at 31 July 2009

Company                                           Carrying % of total
                     Sector                    value £'000 net assets
True Knowledge       Media
Limited                                                682      4.61%
Calastone Limited    Technology                        635      4.29%
Zoopla Limited       Media                             559      3.78%
e-Therapeutics plc   Consumer lifestyle &
                     wellbeing                         450      3.04%
The Key Revolution   Telecommunications
Limited                                                303      2.05%
Surrey Nanosystems
Limited              Technology                        300      2.03%
Nature Delivered     Consumer lifestyle &
Limited              wellbeing                         275      1.86%
Phase Vision Limited Technology                        200      1.35%
The Skills Market
Limited              Recruitment                       100      0.68%
Phasor Solutions
Limited              Technology                        100      0.68%


Dividends
For the period ended 30 April 2009, the Board declared an interim
dividend of 0.5p per share, payable from revenue reserves. This
dividend was paid on 31 July 2009, to shareholders, who were on the
register on 10 July 2009.

Investment objective
Our focus is on providing early stage, development and expansion
funding to unquoted UK smaller companies. Many of these companies
have great potential but need support to create a large business
often by taking a relatively modest market share. We are very
interested in businesses that address current trends in the market.
We aim to create a balanced investment portfolio spanning multiple
industries and business sectors. Our pipeline of deals remains very
strong and we are looking forward to the opportunities ahead.

Material events and transactions
The Fund's Board is not aware of any other significant event or
transaction which has occurred between 1 August 2009 and the date of
publication of this statement which would have a material impact on
the financial position of the Fund.

For further information please contact:
Alex Macpherson- Fund Manager
Octopus Ventures Limited - 020 7710 2800

ENDS

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