Issue of Equity

Baronsmead VCT 2 PLC
17 December 2001



BARONSMEAD VCT 2 PLC

To:     Company Announcements Office

Date:   17 December 2001



Issue of Equity

The Company announces that on 17 December 2001 it allotted and issued 375,719
new ordinary shares of 10p each under the Offer for Subscription at a price of
109.00p.

The new shares increase the issued share capital to 41,001,186 ordinary
shares.

An application for admission to listing has been made today in respect of the
375,719 new ordinary shares.

For further information please contact:


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