Announcement re: Merger Discussions

OCTOPUS SECOND AIM VCT PLC 13 January 2010 JOINT ANNOUNCEMENT - MERGER DISCUSSIONS The Boards of Octopus Second AIM VCT plc ("Second") and Octopus IHT AIM VCT plc ("IHT") are pleased to announce that they are in preliminary discussions on terms for the merger of Second and IHT (the "Companies"). Each of the Companies is currently managed by Octopus Investments Limited. If the merger proceeds it is likely to be by way of a "scheme of reconstruction" pursuant to s.110 of the Insolvency Act 1986 (the "Scheme").  Under the proposed Scheme, the assets and liabilities of one of the Companies would be transferred to the other on a relative net asset value basis to create one larger VCT.  This should produce a significant reduction in running costs as well as other benefits.  A merger on this basis would be outside the City Code on Takeovers and Mergers The proposed transaction which, if implemented, is expected to be completed before 30 June 2010, would require the approval of shareholders of each of the Companies. A further announcement will be made in due course. For further information please contact: Chris Hulatt Director, Octopus Investments Limited 020 7710 2804 [HUG#1373264]