Issue of Equity

Baronsmead VCT 2 PLC
13 December 2002

BARONSMEAD VCT 2 PLC

To:    RNS

Date:  13 December 2002


Issue of Equity

The Company announces that on 13 December 2002 it allotted and issued 55,147 new
ordinary shares of 10p each under the Dividend Reinvestment Scheme at a price of
93.69p.

The new shares increase the issued share capital to 41,006,722 ordinary shares.

An application for admission to listing has been made today in respect of the
55,147 new ordinary shares.

For further information please contact:

                          Gary Fraser, ISIS Asset Management plc : 0131 465 1000



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