Issue of Equity

Baronsmead VCT 2 PLC
28 May 2004

To:            RNS

From:          Baronsmead VCT2 plc

Date:          28 May 2004




Issue of Equity

The Company announces that on 28 May 2004 it allotted and issued 140,051 new
ordinary shares of 10p each under the Offer for Subscription at a price of
106.00p.


The new shares increase the issued share capital to 42,054,168 ordinary shares.


For further information please contact:
Gary Fraser, ISIS Asset Management plc, Secretaries:          0131 465 1000


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