Dividend Declaration

Baronsmead VCT 2 PLC
08 February 2006


To:       RNS

Date:     8 February 2006

Company:  Baronsmead VCT 2 plc

Subject:  Dividends to both Ordinary and C Shareholders
          

Following a series of profitable realisations, the Board of Baronsmead VCT 2 plc
is pleased to declare a third interim dividend of 6.0p per Ordinary Share
(comprising 1.1p revenue and 4.9p capital) to be paid on 20 March 2006 to
Ordinary Shareholders on the register on 17 February 2006.

Since launch in April 1998, dividends totalling 47.40p have been paid to
Ordinary Shareholders, an average of 5.9p per annum.

The Board of Baronsmead VCT 2 plc is also pleased to declare a second interim
dividend of 1.3p per C Share to be paid on 20 March 2006 to C Shareholders on
the register on 17 February 2006.

These interim dividends are being paid prior to 5 April 2006 to allow existing
shareholders the current 40% tax relief available through the issue of new
shares under the Dividend Reinvestment Scheme.

This dividend payment is in line with the Boards aim to sustain annual dividends
at 4.5p per Ordinary Share, whilst striving to maintain a NAV of approximately
100p per Ordinary Share or more.



For further information contact:

David Thorp, ISIS EP LLP:                                         0207 506 1609
Rhonda Nicoll, F&C Asset Management plc:                          0131 465 1074


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