Issue of Equity

Baronsmead VCT 2 PLC
01 October 2004

TO:                LONDON STOCK EXCHANGE, COMPANY ANNOUNCEMENTS

FROM:              Baronsmead VCT 2 plc

DATE:              1 October 2004

SUBJECT:           Offer for Subscription

C Share Issue

The Board of Baronsmead VCT 2 plc is pleased to announce that applications have
been received in respect of 1,833,603 C shares at 100p per C share which have
been issued on 1 October 2004.  Trading in these C shares is expected to
commence on 4 October 2004 at 8.00am.

This brings the total number of C shares in issue to 1,833,603.

David Thorp, ISIS Equity Partners plc:                 0207 506 1100

Rhonda Nicoll, ISIS Asset Management plc:              0131 465 1000


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