Mobeus I&g 2 Regulatory News (MIG)

Mobeus Income & Growth 2 VCT plc

Half-Yearly Report for the six months ended 31 October 2012

INVESTMENT OBJECTIVE

Mobeus Income & Growth 2 VCT plc formerly Matrix Income & Growth 2VCT plc ("MIG2", the "Company" or the "Fund") is a Venture Capital Trust("VCT") managed by Mobeus Equity Partners LLP previously Matrix Private EquityPartners LLP ("Mobeus") investing primarily in established, profitable,unquoted companies.

The Company's objective is to provide investors with a regularincome stream, arising both from the income generated by the companiesselected for the portfolio and from realising any growth in capital.

Venture Capital Trust Status

Mobeus Income & Growth 2 VCT has satisfied the requirements as aVenture Capital Trust under section 274 of the Income Tax Act 2007 ("ITA") andthe Directors intend to conduct the business of the Company so as to continueto comply with that section.FINANCIAL HIGHLIGHTSAs at 31 October 2012

- The Company realised its investment in Iglu.com Holidays in Mayfor an overall return of 2.53 times the original investment cost in two and ahalf years.

- Increase of 0.5% in Total Shareholder return (share price basis)over the half-year.

- The net asset value (NAV) total shareholder return per sharesince launch at 31 October 2012 was 113.2 pence per share.

- Stable NAV and portfolio performance. NAV increased by 0.5%.

PERFORMANCE SUMMARY

The net asset value (NAV) per share as at 31 October 2012 was 99.2 pence

The table below shows the recent past performanceof the original funds raised in 2001. Historic data for the originalsubscription in 2001 is shown on in a table at the end of this announcement.

Performance data for all fundraising rounds areshown in a table at the end of this announcement.

Ordinary Shares of 1 penny (formerly C Shares until 10 September 2010)

Period Net assets Net Cumulative NAV total Share price Share price (£ million) asset dividends return to total return value paid per shareholders to per share since launch shareholders Share per Share (NAV) (p)) (p) (p) (p)1 (p) Ordinary Share Fund (formerly C Share Fund until 10 September 2010)As at 31 October 24.6 99.2 14.0 113.2 67.4 81.42012As at 30 April 24.5 98.7 14.0 112.7 67.0 81.02012As at 31 October 25.2 99.4 10.0 109.4 64.8 74.82011At close of Offer 8.7 94.5 - - - -for subscriptionin 20051 Source: London Stock Exchange

In the graph on page 3 of the Half-Yearly Report, the NAV and shareprice total returns to shareholders comprise the NAV and share pricerespectively, assuming the dividends paid were re-invested on the date onwhich the shares were quoted ex-dividend in respect of each dividend. Thetotal return figures have been rebased to 100 at 21 December 2005.

CHAIRMAN'S STATEMENT

I am pleased to enclose the Half-Yearly Report of Mobeus Income &Growth 2 VCT plc (the "Company") for the period from 1 May 2012 to 31 October2012 (the "Report"). The Company changed its name from Matrix Income & Growth2 VCT plc to Mobeus Income & Growth 2 VCT plc on 29 June 2012.

Performance

The Net Asset Value ("NAV") per Ordinary Share at 31 October 2012was 99.24 pence (30 April 2012: 98.71 pence). The NAV total return sincelaunch was 113.24 pence per share (30 April 2012: 112.71 pence per share).Both represent an increase of 0.5% over the period, mainly due to gains in theinvestment portfolio. This represents slippage against the Board's target forthe Manager of an average total NAV return of 8% per annum, although theprevious two years since this target was set have averaged 10.5% per annum.Shareholders should note that the performance data in my statementrelates to the one Ordinary Share class now in existence, which was formerlycalled the C share class. This single share class was created after a shareclass merger of the former Ordinary and C share class on 10th September 2010.To assist shareholders to monitor the performance of their original Ordinaryor C Share investment in a particular fundraising on a consistent basis, wehave included separate performance data in a table at the end of thisannouncement.

Investment Portfolio

The first six months of the financial year continued to see the UKand global economies struggling to come to terms with the persistingvolatility caused in part by the unresolved debt problems in several of theEurozone countries. We expect the recovery to be slow and uncertain.

However, despite the macro-economic situation, the portfolio hasremained stable. Overall, the portfolio recorded realised and unrealised gainsof £99,858 over the six month period. Apart from one major realisation(Iglu.com) and a new investment in the period (Tessella Holdings Limited) theCompany's investment and portfolio activity were relatively quiet. The newinvestment environment was affected by the continued weakness in the economyand more recently by the uncertainty regarding the future direction of VCT taxregulation. Even though the rate of investment has been low compared to someprevious periods, the Investment Manager is currently considering a number ofpotentially strong opportunities. The Board and the Investment Managercontinue to adopt a cautious approach to completing sufficiently robust newinvestments in this challenging market.

Portfolio Activity

The Company invested £906,762 in the period, into Tessella Limitedvia the acquisition vehicle Sawrey Limited, as part of the Manager's OperatingPartner programme. The sale of Iglu.com in May for an overall return of 2.5times the original investment cost in two and a half years was a pleasingresult. A smaller follow-on investment of £57,143 was made into PXP in June2012 as part of a major re-structuring of the company to enable PXP tocontinue to trade following a sustained period of poor trading in achallenging market. Blaze Signs repaid their entire original loan, generatingproceeds of £356,158, including premium of £82,190. After the period end,£623,480 including premium was repaid in respect of their second loan bringingthe total loan payment proceeds (including interest) to date to £1.45m.

Details of investment activity during the six months to 31 October2012 and a summary of performance highlights in the portfolio can be found inthe Manager's Review below.

Revenue Account

The results for this period are set out on the following pages andshow a revenue gain (after tax) of 0.77 pence per Ordinary Share (30 April2012: gain of 2.03 pence). The total gain (after tax) was 0.40 pence perOrdinary Share (30 April 2012: gain of 5.23 pence).

The revenue return for the period of £191,288 is a fall of £85,766from last year's comparable period. This is principally due to a fall inincome of £67,432 from last year's £520,516 to £453,084 now. This was due inturn to three main factors:-

Revenue returns benefited firstly from an increase in loan stockinterest of £41,235 (being an increase of 12%, compared to the comparableperiod last year). The rise in loan stock interest reflects the new loan stockinvestments made over the last year, namely EMaC Limited, DiGiCo Global andmost recently Tessella Holdings Limited.

Dividend income fell by £103,971, principally because the prioryear included a dividend from DiGiCo of £135,282, but dividends from Vectair,RDL and Focus mitigated this reduction. Lower cash balances than thecomparable period contributed to lower liquidity fund income and bank interestof £10,905.

Expenses charged to the Revenue Account have risen by £13,945. Fundmanagement fees charged to the Income Statement in total have increased by0.68% to £303,820, in line with the slightly higher net assets than theequivalent period last year. Other expenses have also risen by £13,433 in theperiod to £150,097 (2011: £136,664). This increase was due to higherregistrars' fees, audit fees and trail commission costs.

Dividends

The Board's objective is, subject to the availability of sufficientreserves and liquidity, to distribute regular and consistent dividends. TheBoard intends to review the level of dividends to be paid before the year-end.

Liquidity

As a result of the investment activity referred to above, theCompany retains cash liquidity of £4.1 million. The sum has since increased by£623,480 due to the repayment of Blaze in November 2012. When the investmentsin acquisition companies of £6 million are taken into account, the Companyremains well positioned to make new investments and support suitableinvestment opportunities within the portfolio if required.

Investment in qualifying holdings

The Company is required to meet the target set by HM Revenue &Customs ("HMRC") of investing 70% of the funds raised in qualifying unquotedand AIM quoted companies. The Company exceeded this limit (based on VCT costas defined in tax legislation, which differs from the actual cost given in theInvestment Portfolio Summary below) throughout the period. The balance of theportfolio was invested in cash and a selection of readily realisable, moneymarket funds with AAA credit ratings.

Changes to VCT legislation

The enactment of the Finance Act 2012 has ended a period ofuncertainty in finalising the changes to the tax legislation that will applyto VCTs in the future. The principal change that affects the Company is thatthe funds raised after 6 April 2012 can no longer be used by the Manager tocarry out certain types of management buy-out transactions ("MBOs"). However,the Company has a significant amount of cash raised prior to this date that itwill continue to use to pursue its successful strategy of investing in MBOs ofprofitable and cash generative companies.A number of the tests for VCT investment have also been revised bythe Finance Act, enabling VCTs to invest in larger companies with up to 250staff and gross assets of up to £15 million immediately before investment and£16 million immediately after the investment. Also, investee companies can nowreceive up to £5 million in any rolling 12 month period from state-aidedsources, which include VCTs.

Share Buybacks

During the six months ended 31 October 2012 the Company continued to implementits buy-back policy and bought back 80,160 Ordinary Shares, representing 0.32%of the shares in issue at the start of the year, at a total cost of £55,116.The shares above were bought back at a price of 68.4 pence per share. Thisrepresented a discount to the latest announced NAV at the time of 30.7%. Theseshares were subsequently cancelled by the Company.

Selling your shares

The Company's shares are listed on the London Stock Exchange and assuch they can be sold in the same way as any other quoted company through astockbroker. Shareholders wishing to sell their shares are advised to contactthe Company's stockbroker, Panmure Gordon (UK) Limited, by telephoning 0207886 2716 or 2717 before agreeing a price with your stockbroker. Shareholdersare also advised to discuss their individual tax position with their financialadvisor before deciding to sell their shares.

Shareholder communication

The Company maintains a programme of regular communication withShareholders through newsletters and a dedicated website in addition to theCompany's Half-Yearly and Annual Reports.

The Manager has established a new website, which can be accessed bygoing to www.mobeusequity.co.uk. This is regularly updated with information onyour investments including case studies of portfolio companies. The Companycontinues to have its own dedicated section of the website which Shareholdersmay prefer to access directly by going to www.mig2vct.co.uk. This includesperformance tables and details of dividends paid as well as copies of pastreports to shareholders.As we informed Shareholders in last year's Annual Report, we haveadopted electronic communications because we believe that this is the mostefficient way of communicating with Shareholders as well as making savings tothe Company on postage and printing costs. Accordingly, we previously informedShareholders that the principal method of communicating with them would be byemail, but offered them the opportunity to elect to continue to receiveprinted copies of communications through the post. Shareholders who havereplied will, depending on the option chosen, receive either an emailnotifying them that documents have been placed on the Company's website orprinted copies of these documents through the post. If they have not replied,they will receive a letter notifying them that documents have been placed onthe Company's website but will be given another opportunity to select one ofthese two communication options.

Shareholder workshop

We received positive feedback from the second shareholder workshop,held in January 2012, which was attended by nearly 100 Mobeus VCTshareholders. It is intended that this will be an annual event andshareholders should have already received an invitation to attend either thelunchtime or evening session at the next workshop which is to be held on 29January 2013. The workshops will include presentations from the Manager on theportfolio as a whole and from a successful entrepreneur from one of the VCT'sinvestee companies.

Industry awards for the Investment Manager

It is pleasing to report that Mobeus won the award for VCT of theYear 2012 at the Investor AllStars Award 2012. It was also named VCT House ofthe Year 2012 at the Unquote" British Private Equity Awards 2012. Thecitations for these awards recognised Mobeus' outstanding performance inachieving record realisations during the year. The Board is delighted that thework of the Investment Manager has been acknowledged in this way.

Outlook

The recent changes to the VCT legislation referred to above are notexpected to affect the Company's performance unduly for the next few years. Weare continuing to monitor developments in the industry, including the recentconsultation paper published by the FSA on the promotion of VCT shares toretail investors and the implementation of the Retail Distribution Review. Anyresulting impact on the fund will be reported to shareholders.

The UK economy remains relatively depressed, with only minimaleconomic growth being forecast. In such an environment, your Board andInvestment Manager will remain vigilant about the potential impact on theportfolio and cautious when evaluating new opportunities.

I would like to thank all our Shareholders for their continuingsupport.Nigel MelvilleChairman14 December 2012RESPONSIBILITY STATEMENTIn accordance with Disclosure and Transparency Rule (DTR) 4.2.10,Nigel Melville (Chairman), Adam Kingdon (Chairman of the Audit Committee),Sally Duckworth (Chairman of the Investment Committee) and Kenneth Vere Nicoll(Chairman of the Nomination and Remuneration Committee), the Directors of theCompany, confirm that to the best of their knowledge:

(a) the condensed set of financial statements, which have beenprepared in accordance with the statement "Half-Yearly Reports" issued by theAccounting Standards Board, give a true and fair view of the assets,liabilities, financial position and loss of the Company as required by DTR4.2.4;

(b) the interim management report included within the Chairman'sStatement, Investment Policy, Investment Manager's Review and InvestmentPortfolio Summary includes a fair review of the information required by DTR4.2.7 being an indication of important events that have occurred during thefirst six months of the financial year and their impact on the condensed setof financial statements;

(c) a description of the principal risks and uncertainties facingthe Company for the remaining six months is set out below, in accordance withDTR 4.2.7; and

(d) There are no related party transactions in the first six monthsof the current financial year to be disclosed, in accordance with DTR 4.2.8.

PRINCIPAL RISKS AND UNCERTAINITIES

In accordance with Disclosure and Transparency Rule (DTR) 4.2.7,the Board confirms that the principal risks and uncertainties facing theCompany have not materially changed from those identified in the Annual Reportand Accounts for the year ended 30 April 2012. The Board acknowledges thatthere is regulatory risk and continues to manage the Company's affairs in sucha manner as to comply with section 274 Income Tax Act 2007.

The principal risks faced by the Company are:

- economic risk;

- loss of approval as a Venture Capital Trust;

- investment and strategic risk;

- regulatory risk;

- financial and operating risk;

- market risk;- asset liquidity risk;- market liquidity risk;- credit/counterparty risk.

A detailed explanation of the principal risks facing the Companycan be found in the 2012 Annual Report and Accounts on page 46. Copies areavailable from www.mig2vct.co.uk.

RELATED PARTY TRANSACTION

There are no related party transactions in the first six months of the currentfinancial year to be disclosed.

GOING CONCERN

The Board has assessed the Company's operation as a going concern.The Company's business activities, together with the factors likely to affectits future development, performance and position are set out in the interimmanagement report which is included within the Chairman's Statement,Investment Policy, Investment Manager's Review and Investment PortfolioSummary. The Directors have satisfied themselves that the Company continues tomaintain a significant cash position; the majority of companies in theportfolio continue to trade profitably; and the portfolio taken as a wholeremains resilient and well-diversified. The major cash outflows of the Company(namely investments, buy-backs and dividends) are within the Company'scontrol.The Board's assessment of liquidity risk and details of theCompany's policies for managing its capital and financial risks are shown inNote 19 on pages 46 - 54 of the Annual Report and Accounts for the year ended30 April 2012. Accordingly, the Directors continue to adopt the going concernbasis of accounting in preparing the Half-Yearly Report and annual financialstatements.CAUTIONARY STATEMENT

This report may contain forward looking statements with regards tothe financial condition and results of the Company, which are made in thelight of current economic and business circumstances. Nothing in this reportshould be construed as a profit forecast.

For and on behalf of the Board:

Nigel MelvilleChairman14 December 2012INVESTMENT POLICY

The VCT's policy is to invest primarily in a diverse portfolio ofUK established, profitable, unquoted companies in order to generate capitalgains from trade sales and flotations.

Investments are structured as part loan and part equity in order toreceive regular income and to provide downside protection in the event ofunder-performance.

Investments are made selectively across a number of sectors,primarily in management buyout transactions (MBOs) i.e. to support incumbentmanagement teams in acquiring the business they manage but do not own.Investments are primarily made in companies that are established andprofitable.

Uninvested funds are held in cash and low risk money market funds.

VCT regulation

The investment policy is designed to ensure that the VCT continuesto qualify and is approved as a VCT by HM Revenue & Customs ("HMRC").

Amongst other conditions, the VCT may not invest more than 15% ofits investments in a single company and must achieve at least 70% by value ofits investments throughout the period in shares or securities comprised in VCTqualifying holdings, of which a minimum overall of 30% by value (70% for fundsraised after 6 April 2011) must be ordinary shares which carry no preferentialrights (save as may be permitted under VCT rules). In addition, although theVCT can invest less than 30% (70% for funds raised after 6 April 2011) of aninvestment in a specific company in ordinary shares it must have at least 10%by value of its total investments in each VCT qualifying company in ordinaryshares which carry no preferential rights (save as may be permitted under VCTrules).UK CompaniesThe companies in which investments are made must have no more than£15 million of gross assets at the time of investment to be classed as a VCTqualifying holding. The additional £7.3 million funds raised by the Companyafter 6 April 2006 are subject to a £7 million gross assets test for aninvestment to be VCT qualifying.

Asset mix

We aim to hold at least 80% of the Company's net assets inqualifying investments. The balance of the portfolio is held in readilyrealisable interest bearing investments and deposits.

Risk diversification and maximum exposures

Risk is spread by investing in a number of different businessesacross different industry sectors. To reduce the risk of high exposure toequities, each qualifying investment is structured using a significantproportion of loan stock (up to 70% of the total investment in each VCTqualifying company). Initial investments in VCT qualifying companies aregenerally made in amounts ranging from £200,000 to £1 million at cost. Ongoingmonitoring of each investment is carried out by the Manager generally throughtaking a seat on the Board of each VCT qualifying company.

Co-investment

The VCT aims to invest alongside three other Income and Growth VCTsadvised by the Manager with a similar investment policy. This enables the VCTto participate in combined investments by the Investment Manager of up to £5million.Borrowing

The VCT has no borrowing and does not have any current plans forfuture borrowings.

Management

The Board has overall responsibility for the Company's affairsincluding the determination of its investment policy. Investment anddivestment proposals are originated, negotiated and recommended by the Managerand are then subject to formal approval by the Directors. Mobeus EquityPartners LLP provides Investment Advisory, Company Secretarial and Accountancyservices to the VCT.INVESTMENT MANAGER'S REVIEWOverviewIt was harder to complete new investments in the six month periodunder review, partially due to the second dip into recession which reviveduncertainty surrounding the extent and depth of the recovery. Lack of clarityregarding changes to VCT regulations further dampened the fragile market.Nonetheless, dealflow has improved in recent months, at least in terms of thenumber of deals coming forward, although concluding transactions has continuedto be difficult. We have a number of interesting opportunities in the pipelineand are therefore hopeful that the pace of new investment will increase again.Uncertainty over the future persists, particularly amongst potential sellersof businesses, but our investment approach combining debt and equity continuesto be attractive to companies seeking investment in a market whereavailability of bank finance remains patchy at best. This means thatmanagement buy-out teams are frequently turning to us as a reliable source offunding for their plans.

The VCT and the Investment Manager are broadening the scope of thedeals which we target by identifying opportunities to invest more capital tosupport the expansion of successful businesses in the existing portfolio,including where appropriate, deploying loan funding to support portfoliocompanies' growth plans.

We believe that the VCT's strategy of investing in well-structuredMBO deals; supporting highly motivated management teams; focusing on acquiringestablished, profitable, positive cashflow businesses; and investing partly inincome yielding loan stocks substantially increases the downside protection toShareholders' capital. We have noted the recent change in VCT legislationpreventing certain types of MBOs, but also note that this restriction does notapply to the substantial level of funds held by the VCT from earlierfundraisings.The strategy above is executed by retaining and developing aportfolio of successful companies until each has reached the optimal point fora profitable realisation. In the meantime, the portfolio routinely benefitsfrom returns of loan stock interest, dividends and loan repayments, during thelife of an investment.New investmentOne new investment was completed during the six months period underreview. In July 2012, the Company invested £906,762 in Tessella, resulting ina partial refund of the Company's existing investment of £1 million in theacquisition vehicle Sawrey, to support the MBO of Tessella, an internationalprovider of science-powered technology and consulting services. Founded in1980, the company delivers innovative and cost-effective solutions to complexreal-world commercial and technical challenges such as developing smarter drugtrials, and minimising risk in oil and gas exploration. This company has madean encouraging start since investment.We are confident that our Operating Partner programme will continueto generate successful investments for the Company and accordingly £6 millionis held in six acquisition vehicles. These companies continue to pursue anactive search for investment opportunities. Each of the acquisition vehiclesis headed by an experienced Chairman, well known to us, who is working closelywith us in seeking to identify and complete investments in specific sectorsrelevant to their industry knowledge and experience. We have established thesecompanies to provide time for us to identify and invest in suitable targetcompanies at sufficiently attractive valuations.

Follow-on investments

Only one investee company received further funds in the period. Asmall follow-on investment of £57,143 was made into PXP Holdings in June 2012as part of a major re-structuring of the company following a sustained periodof poor trading in a challenging market. Trading in recent months has startedto show improvement.Realisations

Against an uncertain economic background, we are pleased to reportrealisations during the six months under review. During the period these havegenerated net cash of £1.89m (excluding Sawrey's partial refund of £93k).

In May 2012, the Company realised its entire investment in Iglu.comHolidays, the specialist online ski and cruise holiday travel agent, for cashproceeds and interest of £1.46 million through a sale to Growth CapitalPartners. This realisation contributed to total cash proceeds of £2.53 millionto the Company over the two and a half year life of the investment,representing a 2.53 times return on the Company's original investment of £1million. We have supported this established online ski agent through a periodof rapid growth in its cruise holiday business since the MBO in December 2009.Iglu is now one of the leading distributors of cruise holidays, in the UK, andthe largest independent retailer of ski holidays. The company's revenues nowexceed £90 million.

A total of £433,528 (including any premiums paid) has also beenreceived in loan stock repayments from portfolio companies during the sixmonths to 31 October 2012.

Blaze Signs repaid a total of £356,158 in three separate paymentsreceived between May and August 2012 and Fullfield Limited made a scheduledpayment of £77,370 in July 2012.

Portfolio review

The portfolio at 31 October 2012 comprised thirty investments(2011: twenty-eight) with a cost of £22.8 million (2011: £19.6 million) andvalued at £20.5 million (2011: £21 million). On a like for like basis theportfolio has increased by 0.59% compared with the valuations prevailing at 30April 2012. Over the same period the FTSE All-Share and FTSE SmallCap indiceshave risen by 1.33% and 4.41% respectively.The portfolio's performance as a whole continues to be robust. ATGMedia and DiGiCo continue to be the strongest performers. Blaze has made asteady recovery from the difficulties it experienced during the economicdownturn, enabling it to repay part of its loans as noted above. Focus isexpected to exceed its budget, is performing well on product development andhas a healthy pipeline of new products. Fullfield has maintained its solidstart and cash generation at this company has been strong, as evidenced by itsearly partial repayment of its loan stock during the year.British International has had a difficult year, with further fallsin passenger journeys on its scheduled route to the Isles of Scilly leading toa material reduction in group profitability; this was compounded by the delaysin completing the sale to Sainsbury of its heliport in Penzance, which wasdependent on full planning permission being granted. However, completionfinally took place in October 2012 and the substantial receipt enabled thecompany to fully repay its bank borrowings.

The continuing downturn in the construction and house buildingsectors continues to affect the performance of PXP and Plastic Surgeon,although management have worked well to reposition both of these businessesand make the necessary cuts in costs. The market environment for Youngmanremains uncertain, although it has now fully repaid its bank debt and is wellpositioned to benefit from any upturn in its markets. Faversham has beenstreamlining its operations although progress is slower than anticipated.

Outlook

The outlook for the UK economy is still uncertain, but we arehopeful that we are entering a healthy period of new investment during thelatter part of the year. We continue to be conscious of the need to ensurethat investee companies take appropriate actions to respond to the challengingenvironment ahead. We are maintaining a prudent approach to making newinvestments and ensuring that the portfolio remains well capitalised. We areconfident that good returns can continue to be earned for investors.Mobeus Equity Partners LLP14 December 2012INVESTMENT PORTFOLIO SUMMARYas at 31 October 2012 Date of Total first Book cost Valuation Valuation % of investment/ at 31 at 30 at 31 net Sector October April 2012 October assets 2012 2012 by value £ £ £Qualifying investments AiM quoted investmentsOmega Diagnostics Group plc December 2010 214,998 259,789 246,352 1.0%In vitro diagnostics for Pharmaceuticalsfood intolerance,auto-immune diseases andinfectious diseasesVphase plc (formerly March 2001 254,586 1,014 697 0.0%Flightstore Group plc)Development of energy Electronic andsaving devices for domestic electricaluse equipment 469,584 260,803 247,049 1.0% Unquoted investmentsATG Media Holdings Limited October 2008 767,907 1,865,911 1,969,924 8.0%Publisher and online Media

auction platform operator

Blaze Signs Holdings April 2006 1,124,530 1,422,619 1,473,441 6.0%LimitedManufacturing and Support servicesinstallation of signsFullfield Limited, trading July 2011 1,000,000 1,062,194 1,097,819 4.5%as Motorclean LimitedVehicle cleaning and valet Support servicesservicesIngleby (1879) Limited October 2008 1,095,723 1,095,723 1,095,723 4.5%trading as EMaC Limited(formerly Vanir ConsultantsLimited)Service plans for the motor Support servicestradeAckling Management Limited January 2012 1,000,000 1,000,000 1,000,000 4.1%Food manufacturing, Food productiondistribution and brand & distributionmanagementAlmsworthy Trading Limited March 2012 1,000,000 1,000,000 1,000,000 4.1%Specialist construction, Support servicesbuilding support services,building products andrelated servicesPeddars Management Limited January 2012 1,000,000 1,000,000 1,000,000 4.1%Database management, Support servicesmapping, data mapping andmanagement services tolegal and buildingindustries

Culbone Trading Limited April 2012 1,000,000 1,000,000 1,000,000 4.1%Outsourced services Support services

Fosse Management Limited January 2012 1,000,000 1,000,000 1,000,000 4.1%Brand management, consumer Support servicesproducts and retail

Madacombe Trading Limited April 2012 1,000,000 1,000,000 1,000,000 4.1%Engineering services Support services

Tessella Holdings Limited July 2012 906,762 - 906,762 3.7%(formerly Oval (2253)Limited)3Provision of specialist Support servicesscientific and computerprogramming consultancyRDL Corporation Limited October 2010 1,000,000 921,169 857,426 3.5%Recruitment consultants for Support servicesthe pharmaceutical ,business intelligence andIT industriesBritish International June 2006 1,000,000 1,005,644 840,000 3.4%Holdings LimitedHelicopter service Support servicesoperatorsEOTH Limited trading as October 2011 817,185 817,185 817,185 3.3%Equip Outdoor TechnologiesLimitedBranded outdoor equipment Generaland clothing retailersFocus Pharma Holdings October 2007 517,827 578,529 798,716 3.2%LimitedLicensor and distributer of Support servicesgeneric pharmaceuticalsYoungman Group Limited October 2005 1,000,052 699,966 699,966 2.8%Manufacturer of ladders and Support servicesaccess towersMachineworks Software April 2006 25,727 550,340 597,176 2.4%LimitedSoftware for CAM and Software andmachine tool vendors Computer ServicesASL Technology Holdings December 2010 1,360,130 801,951 506,735 2.1%LimitedPrinter and photocopier Support servicesservicesThe Plastic Surgeon April 2008 392,264 203,433 238,012 1.0%Holdings LimitedSnagging and finishing of Support servicesdomestic and commercialpropertiesRacoon International December 2006 878,527 254,441 192,747 0.8%Holdings LimitedSupplier of hair Personal goodsextensions, hair careproducts and trainingVectair Holdings Limited January 2006 60,293 154,045 159,549 0.6%Design and sale of washroom Support servicesproductsLightworks Software Limited April 2006 25,727 116,629 95,570 0.4%Software for CAD vendors Software and Computer ServicesFaversham House December 2010 374,870 216,647 83,856 0.3%Publisher, exhibition Mediaorganiser and operator ofwebsites for theenvironmental, visualcommunications and buildingservices sectorsMonsal Holdings Limited December 2007 847,614 76,897 76,897 0.3%Supplier of engineering Engineeringservices to the water andwaste sectorsPXP Holdings Limited December 2006 1,220,579 - 57,143 0.2%(Pinewood Structures)Design, manufacture and Constructionsupply of timber frames forbuildingsLegion Group plc (formerly August 2005 150,000 - - 0.0%SectorGuard plc)Provision of manned Support Servicesguarding, mobilepatrolling, and alarmresponse servicesIglu.com Holidays Limited December 2009 - 1,455,265 - 0.0%Online ski and cruise Retailtravel agentSawrey Limited3 March 2011 - 1,000,000 - 0.0%Marketing services and Support servicesmedia 20,565,717 20,298,588 18,564,647 75.6% Total qualifying 21,035,301 20,559,391 18,811,696 76.6%1investments Non-qualifying investmentsDiGiCo Global Limited July 2007 1,334,291 1,334,291 1,334,291 5.4%(formerly Newincco 1124Limited)Design and manufacture of Technology,audio mixing desks hardware and equipmentBritish International 160,000 320,000 320,000 1.3%Holdings LimitedFullfield Limited, trading 5,809 83,179 5,809 0.0%as Motorclean LimitedATG Media Holdings Limited 104 443 478 0.0%Fuse 8 plc 250,000 - - 0.0%Legion Group plc 106 - - 0.0%Total non-qualifying 1,750,310 1,737,913 1,660,578 6.7%investments Total portfolio investments 22,785,611 22,297,304 20,472,274 83.3% Money market funds 2 3,800,720 15.4%Debtors 170,381 0.7%Cash 316,362 1.3%Creditors (181,548) (0.7%) Net assets 24,578,189 100.0%1 As at 31 October 2012 the Company held more than 70% of its totalinvestments in qualifying holdings, and therefore complied with the VCTInvestment test. For the purposes of the VCT Investment tests, the Company ispermitted to disregard disposals of investments for six months from the dateof disposal.

2 Disclosed within Current assets as Current Investments in theBalance Sheet.

3 The Company's existing investment in Sawrey Limited of £1m wasused to make an investment in Tessella Holdings Limited of £906,762 resultingin a net repayment of £93,238 to the Company.

UNAUDITED INCOME STATEMENT

for the six months ended 31 October 2012

Six months ended Year ended 30 31 October 2012 April 2012 (unaudited) (audited) Notes Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ Unrealised gains on investments heldatfair value - 99,858 99,858 - 949,129 949,129Realised gains on investments heldat fair value - - - - 230,239 230,239Income 3 453,084 - 453,084 1,042,824 - 1,042,824Investmentmanagementexpense 4 (75,955) (227,865) (303,820) ( 152,221) ( 456,662) ( 608,883)Other expenses (150,097) - (150,097)

( 280,200) - ( 280,200)

Profit/(loss)

on ordinary activities before taxation 227,032 (128,007) 99,025

610,403 722,706 1,333,109 Tax on profit/(loss)on ordinaryactivities 5 (35,744) 35,744 - ( 93,826) 93,826 - Profit/(loss) onordinary activitiesafter taxation 191,288 (92,263) 99,025 516,577 816,532 1,333,109 Basic and dilutedearnings per shareOrdinary Shares 6 0.77p (0.37)p 0.40p 2.03p 3.20p 5.23p Six months ended 31 October 2011 (unaudited) Notes Revenue Capital Total £ £ £ Unrealised gains oninvestments held atfair value - 577,783 577,783Realised gains oninvestments heldat fair value - - -Income 3 520,516 - 520,516Investmentmanagementexpense 4 ( 75,443) ( 226,330) ( 301,773)Other expenses ( 136,664) - ( 136,664) Profit/(loss) onordinary activitiesbefore taxation 308,409 351,453 659,862 Tax on profit/(loss)on ordinary activities 5 ( 31,355) 31,355 - Profit/(loss) onordinary activitiesafter taxation 277,054 382,808 659,862 Basic and dilutedearnings per shareOrdinary Shares 6 1.08p 1.48p 2.56p

The total column of this statement is the profit and loss account of theCompany.

All revenue and capital items in the above statement derive from continuingoperations.

There were no other recognised gains or losses in the period.

Other than revaluation movements arising on investments held at fair valuethrough profit and loss there were no differences between the profit/(loss) asstated above and at historical cost.

Unaudited Balance Sheetas at 31 October 2012 31 October 2012 30 April 2012 31 October 2011 (unaudited) (audited) (unaudited) Notes £ £ £ Non-current assetsInvestments at fair value 9 20,472,274 22,297,304 21,018,933 Current AssetsDebtors and prepayments 170,381 213,610 215,722Current Investments 10 3,800,720 2,099,906 4,121,576Cash at bank 316,362 79,786 112,861 4,287,463 2,393,302 4,450,159 Creditors: amounts fallingdue within one year (181,548) (163,967) (256,309) Net current assets 4,105,915 2,229,335 4,193,850 Net assets 24,578,189 24,526,639 25,212,783 Capital and reserves 11Called up share capital 247,673 248,475 253,595Capital redemption reserve 58,974 58,172 53,052Revaluation reserve 193,533 1,478,804 1,808,252Special distributable reserve 14,202,309 14,350,803 15,748,617Profit and loss account 9,875,700 8,390,385 7,349,267 24,578,189 24,526,639 25,212,783 Net asset value per shareOrdinary Shares 7 99.24p 98.71p 99.42p

Unaudited Reconciliation of Movements in Shareholders' Funds

for the six months ended 31October 2012

Six months ended Year ended Six months ended 31 October 2012 30 April 2012 31 October 2011 (unaudited) (audited) (unaudited) Notes £ £ £Opening shareholders funds 24,526,639 24,863,968 24,863,968Net share capital bought back (55,116) (668,744) (315,397)Profit for the year 99,025 1,333,109 659,862Dividends refunded/(paid) in period 8 7,641 (1,001,694)

4,350

Closing shareholders' funds 24,578,189 24,526,639

25,212,783

Unaudited Summarised Cash Flow Statement

for the six months ended 31 October 2012

Six months Six months ended Year ended ended 31 October

2012 30 April 2012 31 October 2011

(unaudited) (audited) (unaudited) £ £ £Operating activitiesInvestment income received 494,262 913,442 488,734Other income 6,209 - -Investment management fees paid (303,820) (608,883) (301,773)Other cash payments for other expenses (111,895) (280,803) (193,360)Net cash inflow/(outflow) from operating activities

84,756 23,756 (6,399)

Investing activitiesAcquisition of investments (57,143) (8,152,849) (2,150,457)Disposal of investments 1,982,031 5,421,329 -Net cash inflow/(outflow) from investing activities 1,924,888 (2,731,520) (2,150,457) DividendsDividends refunded/(paid) 7,641 (1,001,694) 4,350

Net cash inflow/(outflow) before liquid resource managementand financing

2,017,285 (3,709,458) (2,152,506)

Movement in money market and other deposits (1,700,814) 4,438,591 2,416,921 FinancingPurchase of own shares (79,895) (725,638) (227,845) Net cash outflow from financing (79,895) (725,638) (227,845) Increase in cash 236,576 3,495 36,570 £ £ £Net funds at start of period 79,786 76,291 76,291Increase in cash for the period

236,576 3,495 36,570

Net funds at the end of the period

316,362 79,786 112,861

Reconciliation of profit on ordinary activities before taxation to net cashinflow/(outflow) from operating activities

for the six months ended 31 October 2012

Six months ended

Year ended Six months ended

31 October 2012 30

April 2012 31 October 2011

(unaudited)

(audited) (unaudited)

£ £ £Profit on ordinary activities before taxation 99,025 1,333,109 659,862 Net unrealised gains on investments (99,858) (230,239) (577,783)Net gains on realisations on investments - (949,129) -Decrease/(increase) in debtors 43,229 (132,191) (38,580)Increase/(decrease) in creditors and accruals 42,360

2,206 (49,898)

Net cash inflow/(outflow) from operating activities 84,756 23,756 (6,399)

Notes to the Unaudited Financial Statements

1. Principal accounting policies

The following accounting policies have been applied consistentlythroughout the period. Full details of principal accounting policies will bedisclosed in the Annual Report.

a) Basis of accounting

The unaudited results cover the six months to 31 October 2012 andhave been prepared under UK Generally Accepted Accounting Practice (UK GAAP),consistent with the accounting policies set out in the statutory accounts forthe year ended 30 April 2012 and the 2009 Statement of Recommended Practice,`Financial Statements of Investment Trust Companies and Venture CapitalTrusts' ("the SORP") issued by the Association of Investment Companies. Thefinancial statements are prepared under the historical cost convention exceptfor the revaluation of certain investments.

The Half-yearly Report has not been audited, nor has it beenreviewed by the auditor pursuant to the Financial Reporting Council (FRC)'sguidance on Review of Interim Financial Information.

b) Presentation of the Income Statement

In order to better reflect the activities of a VCT and inaccordance with the SORP, supplementary information which analyses the IncomeStatement between items of a revenue and capital nature has been presentedalongside the Income Statement. The revenue column of profit attributable toequity shareholders is the measure the Directors believe appropriate inassessing the Company's compliance with certain requirements set out inSection 274 Income Tax Act 2007.

c) Investments

Investments are accounted for on a trade date basis

All investments held by the Company are classified as "fair valuethrough profit and loss" as the Company's business is to invest in financialassets with a view to profiting from their total return in the form of capitalgrowth and income. For investments actively traded in organised financialmarkets, recognition and fair value is determined by reference to StockExchange market trading rules and quoted bid prices at the close of businesson the balance sheet date.

Unquoted investments are valued by the Directors at `fair valuethrough profit and loss'. Accordingly, in the absence of a market price, theDirectors have valued unquoted investments in accordance with InternationalPrivate Equity Venture Capital Valuation (IPEVCV) guidelines as updated inSeptember 2009.

All investments are held at the price of a recent investment for anappropriate period where there is considered to have been no change in fairvalue. Where such a basis is no longer considered appropriate, the followingfactors will be considered:

(i) Where a value is indicated by a material arms-lengthtransaction by an independent third party in the shares of a company, thisvalue will be used.

(ii) In the absence of i), and depending upon both the subsequenttrading performance and investment structure of an investee company, thevaluation basis will usually move to either:-

a) an earnings multiple basis. The shares may be valued by applyinga suitable price-earnings ratio to that company's historic, current orforecast post-tax earnings before interest and amortisation (the ratio usedbeing based on a comparable sector but the resulting value being adjusted toreflect points of difference identified by the Investment Manager compared tothe sector including, inter alia, a lack of marketability).

or:-

b) where a company's underperformance against plan indicates adiminution in the value of the investment, provision against cost is made, asappropriate. Where the value of an investment has fallen permanently belowcost, the loss is treated as a permanent impairment and as a realised loss,even though the investment is still held. The Board assesses the portfolio forsuch investments and, after agreement with the Investment Manager, will agreethe values that represent the extent to which an investment loss has becomerealised. This is based upon an assessment of objective evidence of thatinvestment's future prospects, to determine whether there is potential for theinvestment to recover in value.

(iii) Premiums on loan stock investments are accrued at fair valuewhen the Company receives the right to the premium and when consideredrecoverable.

(iv) Where an earnings multiple or cost less impairment basis isnot appropriate and overriding factors apply, discounted cash flow or netasset valuation bases may be applied.

d) Capital gains and losses

Capital gains and losses on investments, whether realised orunrealised, are dealt with in the profit and loss and revaluation reserves andmovements in the period are shown in the Income Statement.

2. The Company revoked its status as an investment company on 7September 2005, so that it can regard realised capital profits as part of theprofits available for distribution.

3. Income Six months ended Year ended Six months ended 31 October 2012 30 April 2012 31 October 2011 (unaudited) (audited) (unaudited)Income from investments £ £ £ Dividends 48,314 216,406 152,285Money-market funds 8,994 35,694 20,296Loan stock interest 388,832 789,960 347,597Bank deposit and other interest 735 764 338Other income 6,209 - - Total Income 453,084 1,042,824 520,516

4. Investment management expense

Under the terms of an investment management agreement dated 10September 2010, Mobeus provides investment advisory, administrative andcompany secretarial services to the Company, for a fee of 2.0% per annumcalculated on a quarterly basis by reference to the net assets at the end ofthe preceding quarter, plus a fee of £113,589 per annum, the latter beingsubject to changes in the retail prices index each year. In accordance withthe policy statement published under "Management and Administration" in theCompany's prospectus dated 10 May 2000, the Directors have charged 75% of theinvestment management expenses to the capital account. This is in line withthe Board's expectation of the long-term split of returns from the investmentportfolio of the Company.5. Taxation

There is no tax charge in the period as the Company has tax lossesin the current year as tax deductible expenditure charged against the capitalreturn exceeds the taxable revenue return.

6. Basic and diluted earnings per share

Six months Year ended Six months ended 31 30 April ended 31 October 2012 2012 October 2011 (unaudited) (audited) (unaudited) Ordinary Shares Ordinary Shares Ordinary Shares £ £ £

Total earnings after taxation: 99,025 1,333,109 659,862

Basic and diluted earningsper share (note a) 0.40p 5.23p

2.56p

Net revenue from ordinaryactivities after taxation 191,288 516,577

277,054

Basic and diluted revenueearnings per share (note b) 0.77p 2.03p

1.08p

Net realised capital gains - 230,239

-

Net unrealised capital gains 99,858 949,129 577,783Capital expenses(net of taxation) (192,121) (362,836) (194,975)Total capital return (92,263) 816,532 382,808 Basic and diluted capitalearnings per share (note c) (0.37)p 3.20p

1.48p

Weighted average number ofshares in issue in the period 24,824,253 25,484,692 25,764,981Notes:

a) Basic and diluted earnings per share is total earnings aftertaxation divided by the weighted average number of shares in issue.

b) Basic and diluted revenue earnings per share is revenue earningsafter taxation divided by the weighted average number of shares in issue.

c) Basic and diluted capital earnings per share is total capitalearnings divided by the weighted average number of shares in issue.

7. Net asset value per shareNet asset value per share As at 31 As at 31 October As at 30 October 2012 April 2012 2011 (unaudited) (audited) (unaudited) £ £ £ Net assets 24,578,189 24,526,639 25,212,783 Number of shares in issue 24,767,305 24,847,465 25,359,455 Net asset value per share (pence) 99.24 p 98.71 p 99.42 p8. Dividends paid Six months Year Six months to 31 October to 30 April to 31 October 2012 2012 2011 (unaudited) (audited) (unaudited) £ £ £Ordinary sharesInterim capital dividend paid forthe year ended 30 April 2012 of2p per share on 20 April 2012 - 500,847 -Interim income dividend paid forthe year ended 30 April 2012 of2p per share on 20 April 2012 - 500,847 -Dividends refunded* (7,641) - (4,350) Total (7,641) 1,001,694 (4,350)

* - This amount represents dividends that were paid on sharessubsequent to being bought back by the Company. As a result, the dividendshave been refunded to the Company.

9. Summary of non-current asset investments at fair value duringthe period Traded Unquoted Preference Qualifying Total on AiM Ordinary Shares loans shares £ £ £ £ £ Cost at 1 May 2012 469,584 7,015,231 43,413 15,797,142 23,325,370Unrealised gains/(losses) at 30 April 2012 41,219 618,637 (17,565) (495,387) 146,904Permanent impairment at 30 April 2012 (250,000) (150,106) - (774,864) (1,174,970)Value at 30 April 2012 260,803 7,483,762 25,848 14,526,891 22,297,304Purchases at cost - 57,143 - - 57,143Net sale proceeds - (1,546,177) (2,326) (433,528) (1,982,031)(Decrease)/increase in unrealised gains (13,754) 498,926 (2,000) (383,314) 99,858Reclassification at valuation - (155,203) - 155,203 -Valuation at 31 October 2012 247,049 6,338,451 21,522 13,865,252 20,472,274Book cost at 31 October 2012 469,584 7,549,369 39,258 14,727,400 22,785,611Unrealised gains/(losses) at 31 October 2012 27,465 (1,060,812) (17,736) (87,284) (1,138,367)Permanent impairment at 31 October 2012 (250,000) (150,106) - (774,864) (1,174,970)Valuation at 31 October 2012 247,049 6,338,451

21,522 13,865,252 20,472,274

Unrealised (losses)/gains at 1 May 2012 (208,781) 468,531 (17,565) (1,270,251) (1,028,066)Net movement in unrealised(depreciation)/appreciation in the period (13,754) 498,926 (2,000) (383,314) 99,858Realisation of previously unrealised gains - (1,302,939)

- (82,190) (1,385,129)Unrealised losses on investments at 31 October 2012 (222,535) (335,482) (19,565) (1,735,755) (2,313,337)

10. Current asset investments at fair value

Current asset investments comprise investments in four OEIC money market funds(three Dublin based and one London based), managed by Blackrock InvestmentManagement (UK) Ltd, Royal Bank of Scotland, Federated Prime Rate CapitalManagement and Scottish Widows Investment Partnership. All of this sum,£3,800,720 (30 April 2012: £2,099,906; 31 October 2011: £4,121,576), issubject to same day access.

11. Movement in share capital and reserves

Called up Capital Special Profit share redemption Revaluation distributable and loss capital reserve reserve reserve account Total £ £ £ £ £ £At 30 April 2012 248,475 58,172 1,478,804

14,350,803 8,390,385 24,526,639

Shares bought back (802) 802 -

(55,116) - (55,116)

Transfer of realised capital losses toSpecial distributable reserve (note) - - -

(93,378) 93,378 -

Realised gain on investments - - - - - - Realisation of previously unrealised gain - - (1,385,129) - 1,385,129 - Dividends refunded - - - - 7,641 7,641 Profit/(loss) for the period - - 99,858 - (833) 99,025 At 31 October 2012 247,673 58,974 193,533

14,202,309 9,875,700 24,578,189

The cost of shares bought back of £79,895 shown in the Cash FlowStatement differs to that disclosed above by £24,779. This is due to anopening share buyback creditor of £24,779 settled during the period.

The cancelled share premium account provides the Company with aspecial reserve out of which it can fund buy-backs of the Company's Shares asand when it is considered by the Board to be in the interests of theShareholders, and to absorb any existing and future realised losses. UnderResolution 9 of the Annual General Meeting held on 6 September 2012,Shareholders authorised the Company to purchase its own shares pursuant tosection 693(4) of the Companies Act 2006. The authority is limited to amaximum of 14.99 per cent of the issued Ordinary Share Capital of the Company,and will unless, previously revoked or renewed, expire on the conclusion ofthe Annual General Meeting of the Company to be held in 2013.The maximum price that may be paid for Ordinary Shares will be anamount equal to 105 per cent of the average of the middle market quotation astaken from the London Stock Exchange daily official list for the five businessdays immediately preceding the day on which that Ordinary Share is purchased.The minimum price that may be paid for Ordinary Shares is 1 penny per share.The authority provides that the Company may make a contract to purchaseOrdinary Shares under the authority conferred by this resolution prior to theexpiry of such authority which will or may be executed wholly or partly afterthe expiration of such authority and may make a purchase of Ordinary Sharespursuant to such contract.12. The financial information set out in this half-yearly financial reportdoes not constitute statutory accounts as defined in section 434 of theCompanies Act 2006. The information for the year ended 30 April 2012 has beenextracted from the latest published audited financial statements, which havebeen filed with the Registrar of Companies. The auditor has reported on thesefinancial statements and that report was unqualified and did not contain astatement under section 498 (2) or (3) of the Companies Act 2006.13. Copies of this statement are being sent to all Shareholders. Furthercopies are available free of charge from the Company's registered office, 30Haymarket, London, SW1Y 4EX, or can be downloaded via the Company's website atwww.mig2vct.co.uk.

MOBEUS INCOME & GROWTH 2 VCT PLC

INVESTOR PERFORMANCE APPENDIX

Performance data at 31 October 2012

The two former 'C' and Ordinary classes of shares were merged on 10 September2010, and the 'C' share class redesignated as Ordinary Shares. The followingtables show, for all investors in the former share classes how theirinvestments have performed since they were originally allotted shares in eachfundraising.Total return data, which includes cumulative dividends paid to date, is shownon both a share price and NAV basis as at 31 October 2012. The NAV basisenables Shareholders to evaluate more clearly the performance of the Manager,as it reflects the underlying value of the portfolio at the reporting date.This is the most widely used measure of performance in the VCT sector.Ordinary Share FundShare price as at 31 October 2012 67.38p 1NAV per share as at 31 October 2012 99.24p Total return per share to shareholders since allotment Cumulative Net dividends % increase Allotment allotment paid per since 30Allotment date(s) price price 2 share4 April 2012 (Share price (NAV

basis) basis) (NAV basis)

(p) (p) (p) (p) (p)Funds raised 2005Between 5 January 2006 and 5 April 2006 100.00 60.00 14.00

81.38 113.24 0.47%

Funds raised 2008/09Between 3 April 2009 and 5 May 2009 92.39 64.67 10.00

77.38 109.24 0.49%

Former Ordinary Share FundShare price as at 31 October 2012 55.72pNAV per share as at 31 October 2012 82.07pShareholders in the former Ordinary Share Fund received 0.827 shares in the Company foreach former Ordinary share that they held on the 10 September 2010, when the two shareclasses merged. Both the share price and the NAV per share shown above have beenadjusted using this merger ratio. Total return per share to shareholders since allotment Cumulative Net dividends % increase Allotment allotment paid per since 30Allotment date(s) price price 2 share4 April 2012 (Share price (NAV (NAV basis) basis) basis) (p) (p) (p) (p) (p) %Funds raised 2000/01 3Between 30 May 2000 and 11 December 2000 100.00

80.00 33.41 89.13 115.48 0.38%

1 - Source: London Stock Exchange.2 - Net allotment price is the allotment price less applicable income tax relief. Thetax relief was 20% up to 5 April 2004, 40% from 6 April 2004 to 5 April 2006, and 30%thereafter.3 - Investors in this fundraising may also have enhanced returns if they had alsodeferred capital gains tax liabilities.4 - For derivation, see table below. Cumulative dividends paid Funds Funds raised raised 2000/01 2005 (p) (p) (p)20 April 2012 3.31 1 4.00 4.0020 April 2011 3.31 1 4.00 4.00 10 September 2010 - Merger of Ordinary Share Fund and C Share Fund13 August 2010 - 1.00 1.0019 September 2009 - 1.00 1.0023 July 2008 6.00 2.5019 September 2007 6.00 1.508 February 2006 6.0020 October 2005 6.0024 September 2003 0.5116 September 2002 1.3510 September 2001 0.93 33.41 14.00 10.00 SHAREHOLDER INFORMATIONThe Manager completed its buyout from Matrix Group on 30 June 2012to become a fully independent firm owned by its partners and changed its nameto Mobeus Equity Partners on 29 June 2012. The name of the Company alsochanged from Matrix Income & Growth 2 VCT plc on this date. The Manager's teamand the Company's current investment strategy remain unchanged.

On 18 December 2008, the Company appointed Matrix Corporate Capital LLP ascorporate broker. On 25 October 2012 Matrix Corporate Capital LLP ceased to bea market maker and the Company appointed Panmure Gordon (UK) Limited as itscorporate broker, as the team previously providing these services at MatrixCorporate Capital LLP has moved to Panmure Gordon (UK) Limited.

Shareholders wishing to follow the Company's progress can visit theCompany's website at www.mig2vct.co.uk. The website includes dedicated pageson the Company providing up-to-date details on fund performance and dividendsas well as publicly available information or links to information about ourlargest investments, the latest NAV and the share price. The London StockExchange's website at www.londonstockexchange.com/en-gb/pricesnews provides upto the minute details of the share price and latest NAV announcements, etc. Anumber of commentators such as Allenbridge at www.taxshelterreport.co.ukprovide comparative performance figures for the VCT sector as a whole. Theshare price is also quoted in the Financial Times.

The Company circulates a bi-annual newsletter to Shareholders, aswell as the usual Annual and Half-Yearly Reports. The next edition will bedistributed in January 2013.

Shareholder enquires:

For enquiries concerning the investment portfolio, please contactthe Investment Manager, Mobeus Equity Partners LLP, on 020 7024 7600 or bye-mail to info@mobeusequity.co.uk.

For information on your holding, to notify the Company of a changeof address or to request a dividend mandate form (should you wish to havefuture dividends paid directly into your bank account) please contact theCompany's Registrars, Capita Registrars, on 0871 664 0300 (calls cost 10p perminute plus network extras. If calling from overseas please ring +44 208 6392157) or write to them at The Registry, 34 Beckenham Road, Beckenham, Kent,BR3 4TU. Alternatively you can contact them via their website atwww.capitaregistrars.com.

Shareholder communications

Shareholders receive a regular newsletter published by theInvestment Manager for all its VCT Shareholders. The newsletter includesinformation on the latest investments made by the Company and portfolio newsas well as performance data.

The Investment Manager holds an annual shareholder workshop whichwill includes a presentation on the Mobeus VCTs' investment activity andperformance.

The next AGM of the Company will be held in September 2013. The AGMwill include a presentation by the Investment Manager and there will be theopportunity for shareholders to discuss the progress of the portfolio with theBoard and the Investment Manager.

Net asset value per share

The Company's NAV as at 31 October 2012 was 99.24 pence per Ordinary Share.The Company announces its unaudited NAV on a quarterly basis.

Dividends

The Board is not recommending the payment of an interim dividend inrespect of the six months ended 31 October 2012 to Ordinary Shareholders. TheDirectors will consider the payment of a dividend in respect of theyear-ending 30 April 2013 before the end of the year.

Shareholders who wish to have future dividends paid directly intotheir bank account rather than sent by cheque to their registered address cancomplete a mandate for this purpose. Mandates can be obtained by contactingthe Company's Registrars, Capita Registrars, at the address below.

Selling your shares

The Company's shares are listed on the London Stock Exchange and assuch they can be sold in the same way as any other quoted company through astockbroker. Shareholders wishing to sell their shares are advised to contactthe Company's stockbroker, Panmure Gordon (UK) Limited, by telephoning 0207886 2716 or 2717 before agreeing a price with their stockbroker. Shareholdersare also advised to discuss their individual tax position with their financialadvisor before deciding to sell their shares.CORPORATE INFORMATION Directors Nigel Melville (Chairman) Sally Duckworth Adam Kingdon Kenneth Vere Nicoll Company's registered office and head office 30 Haymarket London SW1Y 4EX Company Registration Number 3946235 Website www.mig2vct.co.uk Company Secretary Investment Manager, Promoter Auditor and Tax and Company Accountants Advisers

Mobeus Equity Partners LLP

Mobeus Equity Partners LLP PKF (UK) LLP30 Haymarket 30 Haymarket Farringdon PlaceLondon London, SW1Y 4EX 20 Farringdon RoadSW1Y 4EX London [e-mail: EC1M 3APe-mail: info@mobeusequity.co.uk]mig2@mobeusequity.co.uk Bankers Solicitors Stockbrokers Barclays Bank plc SGH Martineau LLP Panmure Gordon (UK) LimitedPO Box 544 No 1 Colmore Square One New Change54 Lombard Street Birmingham LondonLondon B4 6AA EC4M 9AF EC3V 9EX Also at One America Square London EC3N 2SG Registrar VCT Tax Adviser Capita Registrars PricewaterhouseCoopers LLP The Registry 1 Embankment Place 34 Beckham Road London Beckham WC2N 6RN Kent BR3 4TU Tel: 0871 664 0300 (callscost 10p per minute plusnet work extras. Lines areopen 8.30am-5.30pmMon-Fri. If calling fromoverseas please ring +44208 639 2157)

Contact details for further enquiries:

Robert Brittain at Mobeus Equity Partners LLP (the CompanySecretary) on 020 7024 7600 or by e-mail on mig2@mobeusequity.co.uk

Mark Wignall or Mike Walker at Mobeus Equity Partners LLP (the InvestmentManager), on 020 7024 7600 or by e-mail on info@mobeusequity.co.uk.

DISCLAIMER

Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on the Company's website (or any other website) isincorporated into, or forms part of, this announcement.