Issue of Equity

Baronsmead VCT 2 PLC
23 March 2006


TO: LONDON STOCK EXCHANGE, COMPANY ANNOUNCEMENTS


FROM:             Baronsmead VCT 2 plc

DATE:             23 March 2006



Issue of Equity - Pursuant to the Dividend Reinvestment Scheme


The Board of Baronsmead VCT 2 plc is pleased to announce that pursuant to a
Dividend Reinvestment Scheme a further 80,254 ordinary shares have been issued
on 23 March 2006 at 111.64p per ordinary share.  Trading in these ordinary
shares is expected to commence on 24 March 2006 at 8.00am.


This brings the total number of ordinary shares in issue to 41,041,427 and the
total ordinary shares listed to 42,011,427.


David Thorp, ISIS EP LLP:                                          0207 506 1609

Rhonda Nicoll, F&C Asset Management plc:                           0131 465 1074


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