Exercise of Warrants

British SmallerTechCompaniesVCT2PLC
19 May 2003

British Smaller Technology Companies VCT 2 PLC (the "Company")

19 May 2003

Issue of Shares

The Company announces that at a Board meeting held on 19 May 2003, the Board
issued and allotted 3,200 ordinary shares of 10p each, representing
approximately 0.04 per cent. of the enlarged issued ordinary share capital of
the Company which now consists of 7,835,893 ordinary shares, in respect of valid
applications received from Warrantholders applying in respect of the 2002/2003
tax year. The new shares were issued for cash at price of 100p per share.

Application will be made for admission of the new shares to trading on the
London Stock Exchange as soon as possible.

ENDS



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