Offer for Subscription

Baronsmead VCT 2 PLC
28 March 2000

Baronsmead VCT 2 plc

'Baronsmead VCT 2 plc announces that its offer of 12 million New Ordinary
Shares ('the Offer') has been fully subscribed.

The Board recognises that there has been demand for the Offer in excess of 12
million New Ordinary Shares and, having reviewed the Company's prospects for
future investment, is offering, on the same terms, a further 3,650,000 New
Ordinary Shares representing approximately 10% of those issued and to be
issued under the Offers.  Existing subscription forms remain valid for the
extended offer.

In addition, following a decrease in the net asset value since the date of the
Prospectus, in accordance with the terms and conditions of Subscription, the
Board in consultation with Noble & Company Limited have agreed to a decrease
in the Offer Price from 137 pence per New Ordinary Share to 130 pence per New
Ordinary Share (the 'Revised Offer Price') under the Offers.

The revised offer price applies to all the New Ordinary Shares, including the
New Ordinary Shares to be issued under the Offer, that are yet to be allotted.



David Thorp, Friends Ivory & Sime Private Equity plc:        0171 853 6900
Keith Hannay, Friends Ivory & Sime plc :                     0131 465 1096