Issue of Equity

Baronsmead VCT 2 PLC
17 July 2003

BARONSMEAD VCT 2 PLC

To:            RNS

Date:          17 July 2003


Issue of Equity

The Company announces that on 17 July 2003 it allotted and issued 4,952 new
ordinary shares of 10p each under the Dividend Reinvestment Scheme at a price of
89.51p.


The new shares increase the issued share capital to 41,123,852 ordinary shares.


An application for admission to listing has been made today in respect of the
4,952 new ordinary shares.


For further information please contact:


                       Rhonda Nicoll, ISIS Asset Management plc:  0131 465 1000



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