Issue of Equity

British SmallerTechCompaniesVCT2PLC
26 July 2001

BRITISH SMALLER TECHNOLOGY COMPANIES VCT 2 PLC (The 'Company')

Issue of Shares

The Company announces today, further to an announcement made on 01 June 2001
that at a Board meeting on 23 July 2001, the Board issued and allotted a
further 24,620 ordinary shares of 10p each (with warrants attached on a 1:5
basis) representing approximately 0.36 per cent. of the enlarged issued
ordinary share capital of the Company which now consists of 6,752,498 ordinary
shares. The new shares were issued at a price of 100p per share.


Application will be made at the earliest practicable opportunity for admission
of the new ordinary shares to the Official List of the London Stock Exchange.

ENDS