Proposed Fund Raising & Net Asset Value

Baronsmead VCT 2 PLC
9 December 1999


PROPOSED FUND RAISING AND NET ASSET VALUE

The Board of Baronsmead VCT 2 plc ('the Company') announces its intention to
raise a further £15 million by way of an offer for subscription for new
qualifying ordinary shares to be made early in 2000.  Shareholders will
shortly receive a circular from the Company containing a recommendation from
the Board of Directors and a notice of an Extraordinary General Meeting at
which a resolution to authorise this further fund raising will be proposed.

In addition the Board is pleased to announce that, following the listing of
SDL plc on the London Stock Exchange on 7 December 1999, the Net Asset Value
of the Company has increased to approximately £ 27.4 million, representing
111.8 pence per share.  The last published NAV per share was 97.4p per share
at 30 September 1999.

For further details, contact        David Thorp,               0171 853 6909
                                    Keith Hannay,              0131 465 1000