Issue of Equity

Baronsmead VCT 2 PLC
10 May 2004

To:          RNS

From:        Baronsmead VCT2 plc

Date:        10 May 2004



Issue of Equity

The Company announces that on 10 May 2004 it allotted and issued 363,330 new
ordinary shares of 10p each under the Offer for Subscription at a price of
106.00p.

The new shares increase the issued share capital to 42,119,117 ordinary shares.


For further information please contact:

Gary Fraser, ISIS Asset Management plc, Secretaries:          0131 465 1000


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