Conversion of Securities

Baronsmead VCT 2 PLC
03 January 2007

               
To:            RNS

Date:          3 January 2007
Company:       Baronsmead VCT 2 plc
Subject:       Conversion of C Shares into Ordinary Shares


The Board of Baronsmead VCT 2 plc announces the early conversion of the C Shares
of 50p each into Ordinary Shares of 10p each.  The expected timetable, per the
original offer for subscription, was to be no later than 31 March 2007 and this
will now be 31 December 2006.

The C Shares were issued by way of an offer for subscription launched in October
2004 and the funds raised have been managed as a separate pool of assets from
those attributed to the Ordinary Shares.  The C Shares will convert into
Ordinary Shares on a net asset value basis and will then rank pari passu with
the existing Ordinary Shares.

The conversion is expected to take place no later than 29 January 2007, in line
with the Articles of Association of the Company, by reference to a conversion
formula based on the relative net assets of the Company on 31 December 2006,
being the Calculation Date.  Application will be made for the Ordinary Shares to
be admitted to the Official List and to trading on the London Stock Exchange's
market for listed securities.


For further information contact:

David Thorp, ISIS EP LLP:                                       0207 506 1609
Rhonda Nicoll, F&C Asset Management plc:                        0131 718 1074


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