Dividend Declaration

British SmallerTechCompaniesVCT2PLC
23 October 2007


British Smaller Technology Companies VCT 2 plc ("the Company")


Special interim dividend


The Company is pleased to announce that it has realised its residual holding in
Cozart plc for proceeds of £2.91 million. This takes total proceeds received
over the life of the investment to £3.17 million compared to an original cost of
£0.90 million, a total return of 3.5 times money.


As a consequence of this realisation, the directors are pleased to announce the
payment of a special interim dividend of 1.5 pence per Ordinary share. The
dividend will be paid on 30 November 2007 to shareholders on the register on 2
November 2007.


23 October 2007


End



For further details, please contact:


David Hall, YFM Private Equity Tel: [phone]

Johnathan Becher, Landesbanki Limited Tel: [phone]




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