Issue of Equity

Baronsmead VCT 2 PLC
10 January 2005



To:              Company Announcements

Date:            10 January 2005

Company:         Baronsmead VCT 2 plc

Subject:         Issue of Equity


Offer for Subscription for up to 2 million C Shares

The Board of Baronsmead VCT 2 plc is pleased to announce that an application for
up to a further 2 million C Shares has been made today.

Trading in these new C Shares is expected to commence on 14 January 2005 at
8.00am.

This Offer is expected to close at 12 noon on 28 January 2005 or on an earlier
date on which the C Shares are fully subscribed.

To date 18,933,987 C Shares have been issued and applications, to date, have
been received for a further 250,000 C Shares.


For further information please contact:

Robert Coulter, F&C Asset Management plc:           0131 465 1000


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