Issue of Equity

British SmallerTechCompaniesVCT2PLC
3 September 2001


BRITISH SMALLER TECHNOLOGY COMPANIES VCT 2 PLC (The 'Company')

Issue of Shares

The Company announces that at a Board meeting held on 31 August 2001, the
Board issued and allotted a further 17,130 ordinary shares of 10p each (with
warrants attached on a 1:5 basis) representing approximately 0.25 per cent. of
the enlarged issued ordinary share capital of the Company which now consists
of 6,812,628 ordinary shares. The new shares were issued at a price of 100p
per share.

Application will be made at the earliest practicable opportunity for admission
of the new ordinary shares to the Official List of the London Stock Exchange.