Issue of Equity

Baronsmead VCT 2 PLC
18 June 2004


To:            RNS

From:          Baronsmead VCT2 plc

Date:          18 June 2004


Issue of Equity

The Company announces that on 18 June 2004 it allotted and issued 212,980 new
ordinary shares of 10p each under the Offer for Subscription at a price of
107.00p.

The new shares increase the issued share capital to 42,217,148 ordinary shares.


For further information please contact:

Gary Fraser, ISIS Asset Management plc, Secretaries:          0131 465 1000


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