Baronsmead Vt Regulatory News (BVT)

Baronsmead VCT 2 plc Interim Management Statement

For the 3 month period from 1 October 2012 to 31 December 2012.

Headlines+5.2 % Increase in Net Asset Value per share £4.73 million Raised (net of expenses) from 832 shareholders 7.5% Tax free dividend yield for qualifying shareholders for the 12 month period to 31 December 2012Performance SummaryCapital return As at As at Movement 31 Dec 2012 30 Sep 2012Total net assets £80.21m £72.43m Net asset value per 106.32p 101.10p 5.2% shareShare price 100.13p 90.00p 11.3%Discount to NAV (5.8%) (11.0%) 3 month(%) 1 year(%) 5 year(%) 10 year(%) Since launch(%)Net asset valuetotal return(1) 5.16 15.54 29.59 129.34 165.04Key:

(1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP

These total returns are stated before the inclusion of VCT tax reliefs whichare designed to mitigate the higher risks and costs associated with investingin smaller companies and the constraints of the VCT legislation. The tax reliefsgiven at the time of subscription have varied between 20% and 40%, so anyadjusted performance measure including this relief will vary depending on thedate of subscription. There is also the additional ongoingbenefit of receivingVCT dividends tax free.Investment PerformanceThe Net Asset Value increased by 5.2% during the three months to 31 December2012. Over the quarter the unquoted portfolio valuation increased by 1.4%, theAIM portfolio increased in value by 12.6% and Wood Street Microcap Fundincreased by 8.2%.Top Ten InvestmentsPosition at Position at Percentage of NAV31 Dec 2012 30 Sep 2012 Company as at 31 Dec 20121 2 IDOX plc 6.52 1 Nexus Vehicle Holdings Limited 5.93 3 CableCom Networking Holdings 5.4 Limited4 6 Independent Living Services 4.1 Limited5 4 Crew Clothing Holdings Limited 3.86 5 Kafevend Holdings Limited 3.77 9 Staffline Group plc 3.48 8 CSC (World) Limited 3.09 10 Valldata Group Limited 2.210 7 Fisher Outdoor Leisure Holdings 2.1 LimitedTotal 40.1Analysis of Total Assets Percentage of Percentage of total assets at total assets at 31 Dec 2012 30 Sep 2012Unquoted investments 46 51AIM, listed & collective 37 36investment vehicleListed interest bearing 3 8securitiesNet current assets 14 5Total liquid assets 17 13Total assets 100 100

Analysis of Investment Portfolio by Sector

(excluding liquid assets) Percentage of Percentage of total investments at total investments at 31 Dec 2012 30 Sep 2012Business Services 34 34Consumer Markets 17 19Financial Services 2 2Healthcare & Education 15 14Technology, Media & 32 31TelecommunicationsTotal 100 100Investment Activity

During the period a total of approximately £0.6m was invested in three followon investments in the AIM traded companies listed below:

Investments made Date Cost (£'000)Accumuli plc Nov 2012 57Tangent Communications plc Nov 2012 215Hangar8 plc Dec 2012 344Total investments 616During the period one AIM investment, IDOX plc, was partially realised. Inaddition two unquoted investments, Impetus Holdings Limited and MLS Limited,were partially redeemed.RealisationsCompany Date Cost Proceeds Multiple (£'000) (£'000)IDOX plc Nov 2012 118 594 5.03Impetus Holdings Limited Dec 2012 18 18 1.00MLS Limited (partial loan note Oct/Nov 2012 118 118 1.00redemption)Total realisations 254 730Fundraising UpdateThe Company issued a prospectus on 20 November 2012 to raise up to £5 million(before expenses). The Offer closed on 17 December 2012, raising £4.725 millionafter expenses from 426 existing shareholders and 406 new shareholders(comprising 231 shareholders who had previously invested in the otherBaronsmead VCTs and 175 investors new to the Baronsmead VCTs).

Net Asset Value as at 31 January 2013

After taking account of the final dividend of 5.0p per share that was paid on18 January 2013, the net asset value as at 31 January 2013 was 103.26p pershare.

Investment objective

Baronsmead VCT 2 is a tax efficient listed company which aims to achievelong-term investment returns for private investors, including tax freedividends.

Events after the period end

Other than the events described above, the Board is not aware of anysignificant events or transactions which have occurred between 1 January 2013and the date of publication of this statement which would have a materialimpact on the financial position of the Company.

Further information

Further information regarding the Company, including net asset values publishedsince the end of the period and quarterly factsheets, can be found at theCompany's website www.baronsmeadvct2.co.uk

Contact

For further information please contact:Michael ProbinVCT Investor Relations Director020 7506 5600michael.probin@isisep.com