Management Fee Arrangements

Baronsmead VCT 2 PLC
20 December 2006

To:                   RNS



Date:                 20 December 2006



Company:              Baronsmead VCT 2 plc



Subject:              Management Fee Arrangements




The Board of Baronsmead VCT 2 plc ('the Company') announces that with effect
from 1 January 2007, the liquid assets within the Company's portfolio (being
cash, gilts and other assets which are not categorised as venture capital
investments for the purposes of the FSA's rules) will be managed by FPPE LLP.
This is a new English limited liability partnership, which is authorised and
regulated by the FSA and which has the same controlling members as ISIS EP LLP
('the Manager').  The Manager will continue to act as the manager of the Company
and as the investment manager of all the Company's illiquid assets (being all
AiM-traded and other venture capital investments).  The existing management
agreement will terminate with effect from 1 January 2007.  The Manager and the
Company will enter into a new management agreement, commencing on 1 January
2007, substantially on the same terms as the existing management agreement, save
in relation to the investment management of the liquid assets.  In addition, the
Manager, the Company and FPPE LLP will enter into an agreement relating to the
investment management by FPPE LLP of the liquid assets.



The personnel involved in providing management and investment management
services to the Company will not change as a result of the implementation of the
new arrangements.  Amounts equal to the fees payable by the Company to FPPE LLP
will be deducted from the Manager's fees and, accordingly, the implementation of
the new arrangements will not result in any overall increase of the management
and performance fees payable by the Company.





For further information contact:



David Thorp, ISIS EP LLP:                                         0207 506 1609
Rhonda Nicoll, F&C Asset Management plc:                          0131 718 1074




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