Final Results

Oxford Technology 2 VCT PLC
08 May 2006

 Preliminary Announcement for Oxford Technology 2 Venture Capital Trust plc for
                        the year ended 28 February 2006

                              Chairman's Statement

Investment Portfolio

Overall, the Directors of Oxford Technology 2 VCT are pleased with the progress
made by investee companies. Some have had particular difficulties of one sort or
another, but others have made encouraging progress.



However, it is not always possible to translate 'general good progress' into an
increase in Net Asset Value, particularly if the investee company has not needed
to raise additional capital, or if the company is not yet profitable (in these
circumstances the mechanism for revaluation is clear - either the new share
price, or a suitable price to earnings multiple). On the other hand, investees
that have raised capital at a reduced share price, or are failing to meet
significant targets will always be written down in the Net Asset Value.



This conservative approach to valuation of recognising poor performance but not
always recognising strong performance means that a reduction in overall Net
Asset Value does not necessarily mean the portfolio as a whole is doing badly -
and this is true for Oxford Technology 2 VCT, where the Directors are generally
pleased with the portfolio, despite the drop in Net Asset Value. Perhaps the
best way to evaluate the performance of the portfolio is to follow the
individual investee companies, and that is why Oxford Technology 2 VCT tries to
give fairly full descriptions of each company in its newsletters.



A number of companies have performed well over the year (but, in most cases,
have not been 'written up' in value) e.g. Orthogem, which has developed an
artificial bone material, TriPore(R), to replace the harvesting of cadaver bone
(allograft), and bone taken from the patient themselves (autograft). TriPore
recently received its CE Mark, the European approval for use in the clinic, and
expects to be awarded US regulatory approval later in the year.



Commerce Decisions, which provides software to organisations involved in complex
and strategically important procurements (such as battleships, hospitals or
transport infrastructure), achieved its first £1m revenue year in 05/06, and is
set to see this grow by about 70% this year.



ImmunoBiology, which is developing novel vaccines for tuburculosis and influenza
(including pandemic 'bird flu') closed an investment round of £5.5m which sees
the company funded for the next three years, a tremendous achievement for a drug
development company in the current market.



Im-Pak, which has developed a novel technology for plastic injection moulding,
has agreed heads of terms with a public company for a licence on the Im-Pak
process for a particular market sector. If the agreement is concluded, Im-Pak
would receive lump sum payments, as well as monthly royalties as the technology
is exploited.



Oxis Energy  has been making very encouraging progress with its rechargeable
battery, which is proving of interest to BT, and also to oil companies who
particularly like the fact that its lithium sulphide electrochemistry means that
it works at high temperature.



Insense is making good progress with its wound healing dressing, and is also
progressing commercial discussions with potential marketing partners. OCRobotics
has received a contract worth more than $1m for a snake arm robot for the US
military, and finally Telegesis is attracting significant interest from major
global companies for its Zigbee modules.



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



                              Results for the year



Interest on bank deposits and investee loans produced gross income of £473,00
(2005: £37,000) in the year.  Retained profits were £298,000 (2005: loss of
£47,000) and earning per share for the year was 4.97p (2005: loss of 0.78p) per
share.



                                      AGM



Shareholders should note that the AGM for Oxford Technology 2 VCT will be held
on Monday 19th June 2006, at the Magdalen Centre, Oxford Science Park, starting
at 12.00 noon 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.

John Jackson

Chairman

5 May 2006



                            Profit and Loss Account

                      for the year ended 28 February 2006




                                       Year Ended Year End 28
                                         28/02/06      /02/05
                                             £000        £000
Turnover                                      473          37
Administrative Expenses                     (156)       (166)
Operating Profit                              317       (129)
Profit / (loss) on revaluation of            (19)          82
investments
Profit / (loss) on ordinary                   298        (47)
activities before taxation
Tax on ordinary activities                      -           -
Profit / (loss) on ordinary                   298        (47)
activities after taxation

Retained profit / (loss) for the              298        (47)
year
                                           ======      ======
Earnings per ordinary share                 4.97p     (0.78)p
                                           ======      ======















                       Balance sheet at 28 February 2006

                                      28 February 2006 28 February 2005 Audited
                                               Audited
                                      £000        £000         £000        £000
Fixed assets
Investments                                      3,666                    4,434
Current assets
Debtors and prepayments                  3                       67
Cash at bank                           660                      142
                                     _____                    _____
                                       663                      209
Creditors: amounts falling due         (4)                      (4)
within one year
                                     _____                    _____
Net current assets                                 659                      205
                                                 _____                    _____
Net assets                                       4,325                    4,639
                                                 =====                    =====
Capital and reserves
Called up share capital                            600                      600
Share premium account                                -                    5,221
Other reserves:
Capital reserve - realised                           -                    (149)
Capital reserve - unrealised                         -                    (593)
Profit and loss accounts                         2,879                    (440)
Revaluation reserve                                846                        -
Shareholders' funds                              4,325                    4,639
                                                 =====                    =====
Net asset value per share                          72p                      77p
                                                 =====                    =====



            Cash flow statement for the year ended 28 February 2006

                                           2006    2005
                                        Audited Audited
                                           £000    £000
Net cash inflow (outflow) from              381   (149)
operating activities
Capital expenditure and financial
investment
                Purchase of investments   (113)       -
   Disposal / redemption of investments     250      40
                                         ______  ______
Net cash inflow from capital                137      40
expenditure and financial investment
                                         ______  ______
Increase / (Decrease) in cash               518   (109)
                                         ======  ======



                                     Notes:

1. Basis of preparation

The preliminary announcement has been prepared in accordance with applicable
accounting standards 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. Earnings per Ordinary Share

The calculation of earnings per share is based on the net profit for the
financial period of £298,000 (2005: (£47,000)) divided by the weighted average
number of ordinary shares of 6,000,000 (2005: 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 2006 and the profit and loss account,
cash flow statement and associated notes for the year then ended have been
extracted from the company's 2006 statutory financial statements on which the
auditors' opinion is unqualified and does not include any statement under
section 237 of the Companies Act 1985.


                      This information is provided by RNS
            The company news service from the London Stock Exchange