Chairman's Statement

British Smaller Companies VCT PLC
21 July 2000


                       BRITISH SMALLER COMPANIES VCT plc
                           Chairman's AGM Statement
                                       
                                       
British  Smaller  Companies VCT plc ('the Company'), one of the  UK's  largest
regionally-based  venture capital trusts, held its Annual General  Meeting  in
London today shortly after 12 noon.

At the AGM, the Chairman, Sir Andrew Hugh Smith, said: 'The consolidation and
improvement  that was a feature of the second half of last year is  continuing
and I am confident that this year will provide further, interesting investment
opportunities for your Company.

'The broadening of the investment strategy will enable us to take advantage of
a  wider range of investments which should provide enhanced opportunities  for
capital growth.

'Since the announcement of our results, we have invested £500,000 in the  £1.2
million management buy-out of a leading piling contractor, Sheet Piling  (UK),
which is based in Preston. This company, within just four years, has built its
turnover  to  £5 million and has exciting growth potential.  We  have  several
other deals in the pipeline which we expect to come to fruition over the  next
few months.'

All resolutions put before shareholders were duly passed.


For further information call:

Phil Cammerman         Yorkshire Fund Managers Ltd          Tel:[phone]
David Hardy            Binns & Co. PR Ltd                   Tel:[phone]