Issue of Equity

British SmallerTechCompaniesVCT2PLC
18 October 2001


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

Issue of Shares

The Company announces that at a Board meeting held on 16 October 2001, the
Board issued and allotted 20,000 ordinary shares of 10p each (with warrants
attached on a 1:5 basis), representing approximately 0.29 per cent. of the
enlarged issued ordinary share capital of the Company which now consists of
6,832,628 ordinary shares. The new shares were issued for cash at a price of
100p per share.

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


ENDS