Pennine Downing AIM VCT 2 plc
Interim Management Statement
for the three months ended 30 November 2009

In  accordance with Rule 4.3 of the Disclosure  and Transparency Rules of the UK
Listing  Authority, Pennine Downing AIM VCT 2 plc presents an Interim Management
Statement for the three month period ended 30 November 2009.  The statement also
includes  relevant financial information  between the end  of the period and the
date of this statement.

Dividends paid or declared in the period
No dividends were paid or declared in the period.

Performance

                            30 November    31 August    28 February
                                   2009          2009           2009

                                  Pence         Pence          Pence

                            (Unaudited)   (Unaudited)    (Unaudited)

  Net Asset Value ("NAV")          28.2          29.5           26.8

  Cumulative Dividends             27.0          27.0           27.0

  Total Return *                   55.2          56.5           53.8

* NAV plus cumulative dividends paid since launch

Unaudited Investment portfolio summary at 30 November 2009

Ten largest investments by value

                                                                   Valuation
                                                             movement since
                                            Cost  Valuation   31 August 2009

                                            £'000      £'000           £'000



 Synergy Health plc **                        609        782             100

 Cadbury House Holdings Limited *             571        571               -

 Ludorum plc                                  162        363              24

 Hoole Hall Spa and Leisure Club Limited *    360        360               -

 Spice plc **                                 398        319               3

 Elektron plc                                 459        301            (40)

 Supporta plc                                 406        269             134

 Glisten plc                                  246        177             (4)

 FDM Group plc                                150        173              15

 Straight plc                                 160        157              19



 Other venture capital investments          8,367      1,736           (518)



 Other investments                            149        159              10



 Total                                     12,037      5,367           (257)


All investments are quoted on AIM unless otherwise stated.
*              Unquoted
**           Listed on London Stock Exchange Main Market

Investment additions during the 3 months ended 30 November 2009

                                        Cost

                                       £,000

  Cadbury House Holdings Limited ***     571

  Tristel plc                             76
                                     ---------
                                         647


There have been no additions between 1 December 2009 and the date of this
announcement.

Investment disposals during the 3 months ended 30 November 2009

                                  Market value           Gain/(loss)     Total
                                    at 1 March  Disposal   in period  realised
                             Cost         2009  proceeds against cost      gain

                            £'000        £'000     £'000        £'000     £'000

 Venture Capital
 Investments

 Cadbury House Limited ***    461          461       461            -         -

 Dipford Group plc            266            -         -        (266)         -

 Interserve plc                85           31        46         (39)        15

 Nu Nu plc                    469          432       419         (50)      (13)

 Synergy Health plc            13           34        55           42        21
                           -----------------------------------------------------
                            1,294          958       981        (313)        23


After the period end the Company disposed of its holdings in FDM Group plc,
Symphony Environmental Technology plc and Waterline plc, together with a partial
disposal of Cellcast plc and Synergy Health plc, with proceeds thereon totalling
£365,000.

***  During  the  period  end,  the  Company  invested £571,000 in Cadbury House
Holdings  Limited, which comprised reinvestment of  the proceeds of the disposal
from Cadbury House Limited of £461,000 and a new investment of £110,000.

Changes to share capital

                                     Ordinary Shares of
                                           5p each

                                         Shares    £'000

  As at 1 September 2009             23,590,014    1,180

  Shares bought back and cancelled            -        -
                                   -----------------------
  As at 30 November 2009             23,590,014    1,180


There have been no changes to share capital between 1 December 2009 and the date
of this announcement.

Merger discussions
On 30 November 2009, the Company announced that it is in merger discussions with
Pennine AIM VCT plc and that any merger is expected to  be  by  way  of  a
"scheme  of reconstruction" pursuant to  S.110 of  the Insolvency  Act 1986.
Merger discussions are ongoing.

Material events
Other than described above, there were no material events during the period from
1 September  2009 to 30 November 2009 or  in the period  from 1 December 2009 to
the date of this announcement.




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