Issue of Equity

British SmallerTechCompaniesVCT2PLC
22 January 2002

British Smaller Technology Companies VCT 2 PLC (the 'Company')

22 January 2002

Issue of Shares

The Company announced that at a Board meeting held on 18 January 2002, the Board
issued and allotted 80,000 ordinary shares of 10p each (with warrants attached
on a 1:5 basis), representing approximately 1.13 per cent. of the enlarged
issued ordinary share capital of the Company which now consists of 7,069,293
ordinary shares. The new shares were issued for cash at a price of 100p per
share.

Application will be made for admission of the new ordinary shares and new
warrants to trading on the London Stock Exchange as set out in the prospectus
dated 23 November 2001, with dealings expected to commence on 13 February 2002.



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