Offer for Subscritpion

Baronsmead VCT 2 plc                              

Offer for subscription of New Ordinary Shares to raise up to the sterling
equivalent of €2.5million

Baronsmead VCT 2 plc ("the Company") announces the allotment on 16 December
2010 of New Ordinary Shares pursuant to the Offer for subscription which had
raised £2,120,550.00 at that date.

Based on the latest published net asset value of an existing Ordinary Share
("NAV") as at 30 November 2010, the Offer Price of the New Ordinary Shares
allotted on Thursday 16 December 2010 was 102.50p per New Ordinary Share.

In accordance with the Offer document dated 26 November 2010, the Offer Price
at which the New Ordinary Shares are allotted in the Company is calculated on
the basis of the following formula (the "Pricing Formula"):

Latest published net asset value of an existing Ordinary Share on the day of
allotment divided by 0.955 (to allow for issue costs of 4.5 per cent.) rounded
up to the nearest 0.5p per share.

As a result, the Offer Price was calculated as follows:

        Offer Price of New Ordinary Shares Allotted on 16 December 2010        

                                          Baronsmead VCT 2 plc     
                                                                   
                                         (pence per New Ordinary   
                                                 Share)            
                                                                   
Latest published NAV                              97.47            
                                                                   
Latest published NAV divided by 0.955            102.06            
                                                                   
Offer Price (rounding up to nearest              102.50            
0.5p)                                                              

The number of shares allotted and the total number of shares in issue after the
allotment are shown below:

                               Shares allotted (1) Shares in issue 
                                                      following    
                                                    allotment (2)  
                                                                   
Baronsmead VCT 2 plc                2,068,746         76,798,940   

 1. includes shares allotted with respect to any commissions waived and
    reinvested
   
 2. includes 7,553,906 shares held in Treasury
   
Application has been made to the UK listing Authority and the London Stock
Exchange for the New Ordinary Shares to be admitted to the Official List and to
trading on the London Stock Exchange's main market for listed securities. It is
expected that admission will become effective and dealings will commence within
three business days following allotment. Definitive documents of title and
income tax relief certificates are expected to be dispatched within ten
business days of allotment.

For further information please contact:

Michael Probin VCT Investor Relations ISIS EP LLP 020 7506 5796