Annual Report and Accounts

Oxford Technology 2 VCT PLC
02 May 2003

Preliminary Announcement for Oxford Technology 2 Venture Capital Trust plc for
the period ended 28 February 2003

A copy of the full accounts and the accompanying newsletter has been submitted
to the UKLA, and will shortly be available for inspection at the UKLA's Document
Viewing Facility, which is situated at 25 The North Colonnade, Canary Wharf,
London E14 5HS.

Chairman's Statement

Oxford Technology 2 has suffered a significant decline in Net Asset Value caused
by the large decrease in value in Intellikraft Ltd. The October 2002 newsletter
contained the following: Intellikraft is at a critical stage. It is hoping to
achieve first production of the piezoelectric elements which will form the basis
of all its future products in October. If all goes smoothly, it may become very
valuable; if there are problems, its value may fall sharply. Unfortunately there
have been problems, both with the production and with the management team. On 8
January 2003, the Board announced that, in light of these problems, the holding
in Intellikraft would be revalued to £900,000 (£3.6m at 31 August 2002). In
these accounts, the valuation of Intellikraft has been further reduced to
£250,000. The sharp fall in valuation of Intellikraft alone accounts for a 56p
fall in net asset value of the portfolio as a whole. At 28 February 2003, the
net asset value per share was 84p compared to £1.40 at 31 August 2002 and £1.42
at 28 February 2002.

Apart from this, there are general grounds for optimism. The great majority of
investee companies are making excellent progress, and the Board is pleased with
the development of the portfolio as a whole. The investments are described in
detail in the periodic newsletters.

Interest on government stocks and bank deposits together with dividend income
produced gross revenue of £68,000 in the year. Net revenue after taxation and
management expenses was a deficit of £118,000 and revenue return per share for
the period was a loss of 1.97p. Capital return was a loss of 55.92p per share.

John Jackson

Chairman

2 May 2003



Statement of Total Return (Incorporating the Revenue Account)* for the Period
Ended 28 February 2003
                                                                       2003 Audited                              2002
                                                                                                              Audited
                                                   Revenue     Capital   Total £000    Revenue     Capital Total £000
                                                      £000        £000                    £000        £000
Gains/(losses) on investments                            -     (3,355)      (3,355)          -       2,637      2,637
Income                                                  68           -           68        123           -        123
Investment management fee                            (120)           -        (120)      (120)           -      (120)
Other expenses                                        (66)           -         (66)       (59)           -       (59)
                                                     _____       _____        _____      _____       _____      _____
Net return on ordinary activities before             (118)     (3,355)      (3,473)       (56)       2,637      2,581
taxation
Tax on ordinary activities                               -           -            -          2           -          2
                                                     _____       _____        _____      _____       _____      _____
Return attributable to equity shareholders           (118)     (3,355)      (3,473)       (54)       2,637      2,583
Dividends in respect of equity shares                    -           -            -          -           -          -
                                                     _____       _____        _____      _____       _____      _____
Transfers to/(from) reserves                         (118)     (3,355)      (3,473)       (54)       2,637      2,583
                                                      ====        ====         ====       ====        ====       ====
Return per ordinary share                          (1.97)p    (55.92)p     (57.89)p    (0.90p)      43.95p     43.05p
                                                      ====        ====         ====       ====        ====       ====

* 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 period other than
those shown above.



Balance Sheet at 28 February 2003
                                             28 February 2003       28 February 2002
                                                      Audited                Audited
                                              £000       £000        £000       £000
Fixed assets
Investments                                             4,462                  7,630
Current assets
Debtors                                         28                      5
Cash at bank                                   574                    907
                                             _____                  _____
                                               602                    912
Creditors: amounts falling due within          (6)                   (11)
one year
                                             _____                  _____
Net current assets                                        596                    901
                                                        _____                  _____
Net assets                                              5,058                  8,531
                                                        =====                  =====
Capital and reserves
Called up share capital                                   600                    600
Share premium account                                   5,221                  5,221
Capital reserve - realised                              (136)                      8
Capital reserve - unrealised                            (465)                  2,746
Revenue reserve                                         (162)                   (44)
                                                        _____                  _____
Shareholders' funds                                     5,058                  8,531
                                                        =====                  =====
Net asset value per share                                 84p                   142p
                                                        =====                  =====





Cash Flow Statement for the Period Ended 28 February 2003

                                         2002       2001
                                      Audited    Audited
                                         £000       £000
Net cash inflow from operating          (146)         35
activities
Taxation paid                               -       (20)
Capital expenditure and financial
investment
Purchase of investments                 (664)    (2,679)
Redemption / disposal of                  288      2,015
government stocks
Disposal of other investments             189          -
                                        _____      _____
Net cash outflow for capital            (187)      (664)
expenditure and financial
investment
Dividends paid                              -       (60)
                                        _____      _____
Decrease in cash                        (333)      (709)
                                        =====      =====



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' and
under the historical cost convention, modified to include the revaluation of
investments. The principal accounting policies have remained unchanged from
those set out in the company's 2002 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 £118,000 (2002: £54,000) divided by the weighted average
number of ordinary shares of 6,000,000 (2002: 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 £3,355,000 (2002: return of £2,637,000) divided by the
weighted average number of ordinary shares of 6,000,000 (2002: 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 2003 and the statement of total return,
cash flow statement and associated notes for the period then ended have been
extracted from the company's 2003 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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