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2 Foresight 2 VCT plc 02 Chairman’s Statement During the period, £664,322 was invested in follow-on funding rounds in six portfolio companies: Oxonica plc (£181,473), Oled-T (£180,647), Closed Loop London (£166,667), The Bunker Secure Hosting (£81,606), High Integrity Solutions (£37,500), and ClockWorx (£16,429). After suffering a contract setback for its fuel additive, Envirox, during the first half of 2007 which had a significant impact on the company’s operations as well as its share price, Oxonica recently reported performance validation for this additive and significant commercial progress in mainland Europe and Russia. In December the company announced that it had raised in excess of £4 million through a share placing to existing shareholders. New contract wins in the biodiagnostics and security divisions also helped sales. Closed Loop London is a business at the leading edge of plastics recycling in the UK. The company is initially focused on producing food grade recycled PET (polyethylene terephthalate) and HDPE (high density polyethylene). PET is the clear plastic used in over 50% of soft drinks bottles, with over 300,000 tonnes used per annum in the UK with none currently recycled for use as food grade plastic. HDPE is the white plastic used in milk bottles. Closed Loop London is nearing completion of its first recycling plant in Dagenham and has plans in place for a second facility in the North-West. Initial commissioning of the first plant will commence at the end of June with the whole plant coming on-stream within three months, starting with PET and then with the HDPE facilities. The Bunker Secure Hosting is experiencing strong demand for its ultra secure IT hosting services and is developing plans for a substantial increase in its capacity. I C Share Portfolio — Investment Activity The C Share fund continues to progress well and three new investments were made during the six months under review: Lynwood Group Holdings Limited (£250,000), AWP Environmental Limited (£500,000) and Land Energy Limited (£500,000). Lynwood is a co-investment with the Ordinary Shares fund and further details are included earlier in this statement. AWP plans to develop waste to energy power stations, geographically distributed across the country. The investment offers significant environmental benefits. It will divert waste from landfill, contributing to the reduction in landfill targeted by EU and UK legislation. It will also generate renewable electricity, contributing to government targets and earning Renewable Obligation Certificates. Land Energy has been set up to generate renewable power from virgin wood and to exploit the growing demand for wood pellets as a renewable fuel, through a series of plants countrywide. The plants will generate electricity for export to the grid and either use heat for pellet production or supply heat to a nearby user. The company will therefore be both a combined heat and power (CHP) generation operator and a pellet producer. The UK Government has identified CHP as a highly efficient form of energy use, which will be further incentivised from April 2009 by becoming eligible for double Renewable Obligations Certificates. A follow-on investment of £166,667 was also made from the C Shares fund during the period in Closed Loop London, which is described in more detail earlier. I Valuation policy Investments held by the Company have been valued in accordance with the International Private Equity and Venture Capital (IPEVC) guidelines developed by the British Venture Capital Association and other organisations under which investments are valued, as defined in the guidelines, at “fair value”. Ordinarily, unquoted investments will be valued at cost for the 12 months following the date of acquisition as the most suitable approximation of fair value unless there is an impairment or accretion in value during the period. Quoted investments and investments traded on AIM and PLUS (formerly OFEX) are valued at the bid price as at 31 March 2008. The portfolio valuations are prepared by Foresight Group and are subject to approval by the Board. I Share Issues and Share Buy-backs During the period, the Company issued 196,008 Ordinary Shares under the Dividend Investment Scheme at 101.19p per share raising approximately £198,000 in aggregate. These shares were issued under the new VCT provisions that commenced on 6 April 2006, namely: 30% upfront income tax relief which can be retained by qualifying investors if the shares are held for the minimum five year holding period. As a result of the linked offer for subscription, Foresight 2 issued 1,493,309 Ordinary Shares during the period at prices ranging from 104.0p to 114.0p per share. It continues to be the Company’s policy to consider repurchasing shares when they become available in order to provide a degree of liquidity for the Company’s shares. During the period, the Company repurchased 252,435 Ordinary Shares for cancellation at a cost of £222,588 and at an approximate discount to Net Asset Value (NAV) of 10%. A total of 4,353,152 C Shares were issued under its offer for subscription at a cost of £1 per share during the period. I Manager Change of Name The Investment Manager changed its name from Foresight Venture Partners to Foresight Group on 1 October 2007. I Outlook To date there has been no significant fallout from the current credit crunch on the levels of merger and acquisition activity at the smaller end of the market in which Foresight 2 VCT operates and of which the sale of Utarget and Covion Holdings are examples. Your Manager will continue to pursue potential realisations from within the portfolio. The market in which Foresight 2 VCT operates continues to be encouraging in terms of potential new investment opportunities, as evidenced by the current deal flow being reviewed by Foresight Group. Foresight 2 VCT will have access to this deal flow of new opportunities as it invests new funds raised as well as reinvesting some of the proceeds from successful realisations. Peter Dicks Chairman 30 May 2008
Investment Summary Half-Yearly Financial Report for the six months ended 31 March 2008 03 I ORDINARY SHARE FUND 31 March 2008 30 September 2007 Amount Amount Investment Invested Valuation Valuation Methodology Invested Valuation £ £ £ £ Trilogy Communications Limited 1,650,000 1,650,000 * Cost 1,650,000 1,650,000 OLED-T Limited 1,180,647 1,489,308 * Discounted revenue multiple 1,000,000 1,445,719 alwaysON Group Limited 1,050,350 1,050,350 * Cost 1,050,350 1,050,350 Closed Loop London Limited 916,667 916,667 * Cost 750,000 750,000 SkillsMarket Limited 519,999 902,220 * Price of recent funding round 519,999 789,443 The Bunker Secure Hosting Limited 512,510 868,270 * Discounted revenue multiple 430,904 430,904 Aigis Blast Protection Limited 1,000,000 750,000 * Discounted cost 1,000,000 1,000,000 Infrared Integrated Systems Limited 749,985 749,985 * Cost 749,985 749,985 Ixaris Systems Limited 700,000 700,000 * Cost 700,000 700,000 Oxonica plc (AIM listed) 1,181,473 629,639 * Bid price 1,000,000 396,660 ZOO Digital Group plc (AIM listed) 600,000 522,692 Bid price 600,000 591,923 Iskra Wind Turbines Limited 500,000 500,000 Cost 500,000 500,000 Nanotecture Group plc 500,000 500,000 Price of recent funding round 500,000 500,000 TFC Europe Limited 350,000 350,000 Cost 350,000 350,000 Sindicatum Carbon Capital Limited 125,006 328,100 Price of recent funding round 125,006 131,240 Lynwood Group Holdings Limited 300,000 300,000 Cost — — Probability plc (AIM listed) 250,000 210,526 Bid price 250,000 164,474 Sarantel Group plc (AIM listed) 468,000 45,366 Bid price 468,000 68,049 ClockWorx (formerly Auctioning4U Limited) 728,429 — Nil value 712,000 712,000 High Integrity Solutions Limited 437,500 — Nil value 400,000 400,000 Covion Holdings Limited — — Sold 1,000,000 4,284,251 Utarget Limited — — Sold 675,000 675,000 13,720,566 12,463,123 14,431,244 17,339,998 * Top ten investments by value shown on pages 4 to 5. I C SHARE FUND 31 March 2008 30 September 2007 Amount Amount Investment Invested Valuation Valuation Methodology Invested Valuation £ £ £ £ Datapath Holdings Limited 1,000,000 2,459,661 Discounted price/earnings multiple 1,000,000 1,000,000 AWP Environmental Limited 500,000 500,000 Cost — — Land Energy Limited 500,000 500,000 Cost — — Heritage House Media Limited 425,000 425,000 Cost 425,000 425,000 O-Gen UK Limited 300,000 300,000 Cost 300,000 300,000 Closed Loop London Limited 416,667 416,667 Cost 250,000 250,000 Lynwood Group Holdings Limited 250,000 250,000 Cost — — TFC Europe Limited 250,000 250,000 Cost 250,000 250,000 Global Immersion Limited 166,667 166,667 Cost 166,667 166,667 Iskra Wind Turbines Limited 150,000 150,000 Cost 150,000 150,000 3,958,334 5,417,995 2,541,667 2,541,667 All investments shown on pages 6 to 7.
Page 1 and 2: Foresight 2 VCT plc Unaudited Half-
Page 3: Chairman’s Statement I Introducti
Page 7 and 8: Half-Yearly Financial Report for th
Page 9 and 10: Investment Summary — C Share Port
Page 11 and 12: Income Statements for the six month
Page 13 and 14: Unaudited Income Statement (incorpo
Page 15 and 16: Unaudited Statement of Cash Flows f
Page 17 and 18: Notes to the Half-Yearly Results Ha
Page 19 and 20: Half-Yearly Financial Report for th

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