Issue of Equity

Baronsmead VCT 2 PLC
08 October 2004

TO: LONDON STOCK EXCHANGE, COMPANY ANNOUNCEMENTS



FROM:           Baronsmead VCT 2 plc

AVS NO:

DATE:           8 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 1,354,286 C shares at 100p per C share which have
been issued on 8 October 2004.  Trading in these C shares is expected to
commence on 11 October 2004 at 8.00am.

This brings the total number of C shares in issue to 3,187,889.

David Thorp, ISIS Equity Partners plc:                0207 506 1100
Rhonda Nicoll, ISIS Asset Management plc:             0131 465 1000


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