Issue of Equity

Baronsmead VCT 2 PLC
14 December 2001

BARONSMEAD VCT 2 PLC

To:          Company Announcements Office

Date:          14 December 2001



Issue of Equity

The Company announces that on 14 December 2001 it allotted and issued 66,365
new ordinary shares of 10p each under the Dividend Reinvestment Scheme at a
price of 103.19p.


The new shares increase the issued share capital to 40,625,467 ordinary
shares.


An application for admission to listing has been made today in respect of the
66,365 new ordinary shares.


For further information please contact:


                     Gary Fraser, Friends Ivory & Sime plc :  0131 465 1000