REG-Fram AIM VCT 2 plc: Interim Management Statement

Framlington AIM VCT 2 PLC

First interim management statement for the year ending 28 February 2010

To the members of Framlington AIM VCT 2 PLC

This is the Company's first interim management statement for the year ending 28
February 2010 and covers the period to 31 May 2009. This statement has been
produced to comply with the requirements of the Disclosure and Transparency
Rules issued by the UKLA and should not be relied upon by any other party or
for any other purpose.

Investment objective

The Company's investment objective is to achieve long term capital growth
primarily through investment in a diversified portfolio of qualifying companies
quoted on AIM. It is expected that realised capital gains, along with income,
will be returned to the shareholders, at the discretion of the Directors,
through the payment of dividends. The Investment Manager may also invest the
assets of the Company in companies traded on the PLUS Market trading facility
and in unquoted stocks, although this is not currently expected to be
significant.

The majority of the Company's investments will be in newly issued shares, as it
is a VCT requirement that 70% of the funds raised pursuant to the offer be
invested in new issues of shares that qualify as qualifying holdings within
three years of the share issue. The Company had to meet this requirement by 28
February 2009 and now has to comply on an on-going basis.

Qualifying holdings are defined as holdings of shares or securities in unquoted
(including AIM and PLUS Market companies) whose purpose is to carry on a
qualifying trade wholly or mainly in the UK. Sectors that are excluded include
property, financial services and commodities. Companies must not be controlled
by the VCT or any other company. At the end of three years, up to 30% of a
VCT's assets can be invested in non-qualifying investments such as bank
deposits, gilts and fixed interest stock. At least 30% of the VCT's qualifying
holdings must be ordinary shares with no preferential rights. The remainder can
be in loans of at least five years' duration, or preference shares.

The size of companies in which the Company may invest is limited by the VCT
rules. Qualifying holdings, as defined above, must have gross assets of £15
million or less immediately prior to investment and £16 million or less
immediately after investment. Although the companies in which the Company
invests are small, the risk that this entails is mitigated by the
diversification of holdings which results from the requirement to invest 70% of
funds raised in qualifying holdings.

The maximum exposure to any one stock or group, other than another VCT, is 15%
of the Company's investments.

The Company's borrowings must be restricted to an amount which is less than 10%
of the Company's issued share capital and reserves.

Capital structure

The Company had one class of share capital: ordinary shares of 10 pence each.
The Company's issued share capital at the date of this announcement is
30,319,760 ordinary shares of 10 pence each.

Material events and transactions

There were no new investments during the three months to 31 May 2009. £ 642,000
was raised through the disposal of investments.

The board is recommending a final dividend totalling 5.00 pence per share,
bringing total dividends declared by the Company since launch to 16.00 pence
per share. If approved by shareholders at the annual general meeting on 30 July
2009 the dividend will be paid on 12 August 2009 to shareholders on the
register at 3 July 2009.

The Company has sent a Circular to Shareholders re-introducing the Dividend
Reinvestment Scheme whereby Shareholders may elect to reinvest the whole of any
dividend received by subscribing for New Ordinary Shares for cash. The Circular
contains full details of the terms and conditions of the Scheme and the action
to be taken by Shareholders. Copies of the Circular are available from the
Secretary at the Company's Registered Office (see below).

The Dividend Reinvestment Scheme enables Shareholders to increase their total
holding in the Company without incurring dealing costs, issue costs or, under
existing rules, stamp duty. The Scheme is being made available to all
Shareholders in respect of their entire holdings.

From now on, and for so long as the Dividend Reinvestment Scheme is in
operation, on each occasion that a dividend is paid by the Company, it is
intended that Shareholders will have the opportunity to subscribe for New
Ordinary Shares in respect of that dividend.

Shareholders who hold their Ordinary Shares in certificated form should
complete the Mandate Form which has been sent to them. This may be cancelled at
any time by notice in writing to Capita Registrars. Shareholders holding their
Ordinary Shares in uncertificated form in CREST can only elect to receive the
dividend in the form of New Ordinary Shares by means of the CREST procedure to
effect such an election, which is set out in the Circular.

Shareholders wishing to receive their cash entitlement to the Final Dividend
need to take no action.

NAV and total assets at 31 May 2009

31 May 2009 28 February 2009 Increase

%

Net asset value per share 53.90 pence 47.83 pence 12.7

(investments at bid value,
including current year
revenue)

Net asset value per share 64.90 pence 58.83 pence 10.3
including cumulative
dividends paid to date

Net assets £16.4 million £14.7 million 11.6

Share price (mid market) 42.50 pence 35.25 pence 20.6

At 31 May 2009, 72.50 % of the portfolio was invested in qualifying holdings.

The net asset value at 10 July 2009 was 48.52 pence per share.

Ten largest holdings at 31 May 2009

Value at % of net
31.05.09 assets at
31.05.09
£000s

UK Treasury 4.25% 07/03/2001 1,863 11.36

HSBC Finance Corp 6.125% 22/01/2010 1,469 8.96

Allied Domecq Financial Service 6.625% 1,372 8.37
NTS 12/06/14

London Italian Restaurants 1,000 6.10

Brulines Holdings 669 4.08

Mount Engineering 565 3.44

Craneware 562 3.43

Mentorion 540 3.29

Melorio 518 3.16

Concateno 503 3.07

Company information

Year end: 28 February (previously 30 September)

Results:

Interim results to 31 August 2009 announced October 2009

Final results to 28 February 2010 announced June 2010

Dividend: Dividend payable 12 August 2009

Annual General Meeting: 30 July 2009 at 12.30 pm

Further information on the Company, including the annual report and accounts
for the 17 months ended 28 February 2009, the weekly net asset value and the
share price, is available from the Manager's website www.axaframlington.com

By order of the board

AXA Investment Managers UK Limited

Company Secretary to Framlington AIM VCT 2 PLC

155 Bishopsgate, London EC2 M 3XJ

13 July 2009

END