Allotment of Shares & Close of Offer

Baronsmead VCT 2 Plc                              

                     Allotment of Shares & Close of Offer                      

Allotment of Shares

On 12 January 2012, Baronsmead VCT 2 plc ("the Company"), Baronsmead VCT plc,
Baronsmead VCT 3 plc and Baronsmead VCT 4 plc launched separate offers for
subscription for new ordinary shares of 10p each to raise up to £4,135,000 per
company, before expenses, and £16,540,000 in aggregate ("the Offers" and each
an "Offer"). The Company announced on 1 February 2012 that its Offer had become
fully subscribed.

The Company announces the allotment of 4,077,587 New Ordinary Shares has taken
place today at an Offer Price of 101.40p per share pursuant to the Offer
raising £4,135,000 (before expenses).

In accordance with the Offer document dated 12 January 2012, the Offer Price at
which the New Ordinary Shares have been allotted in the Company was calculated
on the basis of the following formula:

Latest published net asset value of an existing Ordinary Share on the day of
allotment divided by 0.9525 (to allow for issue costs of 4.75 per cent.)
rounded up to the nearest 0.1p per share.

As a result, the Offer Price was calculated as follows:

        Offer Price of New Ordinary Shares Allotted on 20 February 2012        

                                           Baronsmead VCT 2 Plc     
                                                                    
                                          (pence per New Ordinary   
                                                  Share)            
                                                                    
Latest published NAV as at 31 January 2012         96.52            
                                                              
                                                                    
Latest published NAV divided by 0.9525            101.33            
                                                                    
Offer Price (rounding up to nearest 0.1p)         101.40            
                                                               

The number of New Ordinary Shares allotted and the total number of Ordinary
Shares in issue after the allotment are shown below:

                               New Ordinary Shares Ordinary Shares 
                                  allotted (1)         in issue    
                                                      following    
                                                    allotment (2)  
                                                                   
Baronsmead VCT 2 plc                4,077,587         80,866,771   

 1. includes shares allotted with respect to any commissions waived and
    reinvested
   
 2. includes 8,698,819 shares held in Treasury
   
The New Ordinary Shares rank pari passu in all respects with the existing
Ordinary Shares.

Application has been made to the UK Listing Authority and the London Stock
Exchange for the New Ordinary Shares to be admitted to the Official List and to
trade on the London Stock Exchange's main market for listed securities. It is
expected that admission will become effective and dealings will commence on, or
around, 22 February 2012. Definitive documents of title and income tax relief
certificates are expected to be dispatched within ten business days of allotment.

Close of the Offer

Accordingly, following the allotment of New Ordinary Shares today, the Offer
has closed.

For further information please contact:

Michael Probin VCT Investor Relations Director ISIS EP LLP 020 7506 5796